Warburg-HIH Invest has launched Top 7 German Office Invest, a new open-ended real estate special alternative investment fund (AIF) to target German office properties.
The German asset manager said the fund, which plans to invest not less than €400m, will target assets in Berlin, Munich, Frankfurt, Hamburg, Düsseldorf, Cologne and Stuttgart.
Alexander Eggert, a managing director of Warburg-HIH Invest, said: “The main target group on the investor side includes savings banks as well as other institutional investors with persistently large investment requirements. Clients of this type are primarily interested in regular dividends and simultaneously in a continuation of their investments.”
At least 70% of the fund’s capital will be in core assets occupied on long-term leases. The remaining can be spent on core-plus properties with letting requirements and higher return potential, the manager said.
Eggert said: “By defining this mix, we intend to achieve a dividend yield between 3.5 and 4.5%.
“Decisive for the success of such a product are a demand for office accommodation that will remain strong in the targeted top cities in the foreseeable future, positive rental growth and an attractive product pipeline.”