Degi launches new European retail spezialfonds

Real estate investment manager Deutsche Gesellschaft fur Immobilienfonds (DEGI) has launched its first real estate spezialfonds for more than one investor. The Degi Europe Retail fund is aimed at institutional investors who want to contribute at least EUR 20 mln to the fund.

Over the next three years the fund will invest roughly EUR 1.5 bn, mainly in shopping centres, specialist retail outlets and city centre retail properties throughout Europe. About half of the fund will be invested in western Europe, and the other half in countries in eastern and southern Europe and in Turkey.

'The trend towards indirect real estate investment is continuing unabated among institutional investors. we are attracting a great deal of interest and demand from pension schemes, provident funds, insurance companies and banks with our spezialfonds for several investors,' Degi's managing director Thomas Linker said.

Degi has already purchased its first proeprty for the fund for EUR 88 mln. The Kropeliner Tor Center is due to open in the high street of the eastern German city of Rostock next September. Almost all the 36 retail units (15,000 m2) in the centre have been let to international retail chains such as Saturn, Zara, New Yorker, Plus and Douglas