Cordea Savills has become the latest fund manager to enter Germany’s popular spezialfonds market by launching its first special fund for institutional investors.
Cordea Savills has become the latest fund manager to enter Germany’s popular spezialfonds market by launching its first special fund for institutional investors.
The fund, Cordea Savills Real Invest 1, has raised €65 mln of equity at its first close from a group of German insurance companies.
The fund’s strategy is focused on offices and mixed-use buildings in the top seven German cities, with lot sizes of between €30 and €70 mln.
It has secured its first asset through a forward commitment to purchase Dortmunder U - Das Viertel, a public private partnership project in Dortmund comprising two vocational colleges.
The scheme is due to be completed at the end of 2015 and the two colleges are let on a fixed basis to the City of Dortmund for 25 years.
The project will be acquired on completion from a special purpose vehicle owned by Hochtief PPP Solutions, Hochtief Project Development and Kolbl Kruse.
Hans Dieter Martin, managing director of Cordea Savills Invest, said the fund will be seeking further assets in the near term that provide ‘immediate and diversified rental income’.
