Warburg-HIH Invest Real Estate has set up a new open-ended fund to invest in core and core-plus office properties in Germany.
Warburg-HIH Invest said the Deutschland Selektiv Immobilien Invest II fund, which plans to raise at least €400m, will target properties in ”selected fast-growing cities”.
”An add-on option permits investments into other types of use up to a limit of 30% of the total assets,” the manager said.
Alexander Eggert, managing director of Warburg-HIH Invest, said the fund will target properties worth €20m or more in cities characterised by a fast demographic and economic growth.
“The selection of location and asset relies on a multi-variable procedure that considers the inflow of young population cohorts as well as the concentration of strong technology companies or the local demand for office accommodation.”
Warburg-HIH Invest said the predecessor fund, with over €200m capital commitments, has generated an average dividend yield of 11.7% annually.
Carsten Demmler, head of capital management at Warburg-HIH Invest, said since the company’s investment strategy delivers excellent performance for its investors at a time “when we continue to believe in the long-term promise of the investment policy, we decided to launch another vehicle with no maturity cap.”