DIC Asset has launched a €400m fund to invest in commercial real estate in German metro regions.
The listed property group said DIC Office Balance V, its seventh open-ended special alternative investment fund, has been seeded with a start-up portfolio of two buildings, in Munich and Hamburg, worth €130m.
The manager said DIC Office Balance V has a target investment volume of between €350m to €400m and targets an annual return of 4% to 4.5%.
Sonja Wärntges, the chief executive officer of DIC Asset, said: “Demand for office real estate remains very high in cities like Hamburg and Munich.
”The high-end start-up portfolio of two assets, which we secured for the fund as early as 2017, permits us to ensure stable rental demand and continuous rent revenues for our investors, and we are convinced that DIC Office Balance V will generate permanently sound distribution yields.”