German property firm DIC Asset has announced the launch of a new special fund targeting core and core-plus retail assets in Germany.
The vehicle, Retail Balance I, will focus on non-discretionary retail centres and retail warehouse parks in Germany's metro regions with a targeted investment volume of €250 mln.
It is DIC Asset's second retail property fund following the launch of the Highstreet Balance vehicle.
'Demand among end consumers for non-discretionary retailers and retail warehouse parks that stock groceries and convenience goods remains as strong as ever despite the online business, and this in turn generates a stable demand for lettable floor space and a steady flow of rent revenues,' said Dirk Hasselbring, member of the Management Board and head of Fund Business at DIC Asset.
The fund is planned to have an annual target return of around 5% and a lifetime of eight to twelve years.
It is being seeded with a start-up portfolio of three non-discretionary retail centres and retail warehouse parks representing a combined value of €190 mln. The properties, located in Hamburg-Harburg, Hamburg-Bergedorf and Berlin, are fully let and comprise around 60,000 m2 of rentable space.