German asset manager and investment firm Hahn Group has launched a new closed public alternative investment fund through its capital management company DeWert Deutsche Wertinvestment.
In its first deal, the real estate fund 'Hahn Pluswertfonds 180 – Fachmarktzentrum Landshut' purchased a specialist retail centre in Landshut, Bavaria, from the Hahn-Spezialfonds German Retail Fund, for €28.4 mln.
DIY store operator Bauhaus is the main tenant and represents 87.9% of the total rental income, while food discounter Penny accounts for the remaining 12.1%. The 2005-built retail centre is located in Landshut's northeast industrial zone and is surrounded by other specialty stores.
Thomas Kuhlmann, CEO of the Hahn Group, commented: ‘The DIY and garden centre industry impresses with its strong growth and focus on stationary business. It benefits, among others, from the trend towards renovations in the real estate portfolio, as new buildings are declining due to rising construction costs. Demand is so stable primarily because many products serve as basic consumer needs.’
Paschalis Christodoulidis, head of sales for private customers, added: ‘The retail park impresses with its excellent location and its two tenants with strong credit ratings. The fund investment is also designed conservatively as usual and thus lays the foundation for long-term value growth and stable distributions.’
Hahn Pluswertfonds 180 – Fachmarktzentrum Landshut is open to qualified investors with a minimum investment of €20,000 plus a 5% surcharge. Its €19.95 mln stake in the Landshut retail center aims for stable returns through long-term leases, initially offering 4.5% p.a. rising to 4.75% from 2034. This conservative fund runs until 31 December 2038 and forecasts a pre-tax cash return of 171.8%.
