Germany's Hanseatic Group is launching its first closed-end investment vehicle for retail investors which will focus on discount stores and retail parks designed and developed by its parent company.
Germany's Hanseatic Group is launching its first closed-end investment vehicle for retail investors which will focus on discount stores and retail parks designed and developed by its parent company.
The Hanseatic Value Strategy Retail Select will invest in a portfolio of up to 12 retail properties with long-term rental agreements and anchored by well-known tenants such as Edeka, Lidl and Rewe.
After closing, the fund will have an investment volume of over EUR 40 mln, including EUR 21 mln in debt. The vehicle, with a life term of 11 years, will target an annual return of 6.7%.
Thomas Küster, director of the newly-launched Hanseatic Capital Partners arm, said that the move is aimed at taking advantage of growing retail investors' interest for real estate on the back of positive growth prospects for the retail sector. 'Our long-term experience in the sector and the well-known tenants in the properties give additional security,' said Kuster.
The Hanseatic Group is a leading German retail real estate developer which has built and invested in over 260 projects with a value of EUR 1.35 bn in the country.
