Henderson Global Investors and Germany's Management für Immobilien (MFI) have announced the creation of a EUR 2 bn German shopping centre fund. The closed-ended fund will offer international and domestic investors exposure to high-end specialist retail property throughout Germany, the parties said.
Henderson Global Investors and Germany's Management für Immobilien (MFI) have announced the creation of a EUR 2 bn German shopping centre fund. The closed-ended fund will offer international and domestic investors exposure to high-end specialist retail property throughout Germany, the parties said.
The fund with a twelve year life, including a divestment period of two years, is a Fonds Commun de Placement (FCP) under Luxembourg law, and is aimed at institutional investors. Henderson and MFI will jointly manage the fund. It is looking to raise a total of EUR 1 bn in equity with an initial target of €200 million at first close. With gearing, the joint venture partners anticipate growing the fund to over EUR 2 bn in total. The total return (IRR) throughout the fund's life is set at a minimum of 7.5% per annum. The minimum subscription sum for investors is EUR 1 mln.
Michael Englisch, head of Germany at Henderson Global Investors, commented: 'Our research shows that the German economy has shown the strongest signs of recovery in the Eurozone since 2001, predicting economic growth of up to 2.4% in 2007. Capital investment also reached a fifteen-year high following reunification. These trends are expected to continue, fuelling the demand for high-quality shopping centre space from tenants active within the German market'.
Henderson is a property asset managers with over EUR 11.9 bn of property funds across Europe, EUR 5.6 bn of which is invested in retail property. MFI is a manager of inner-city shopping arcades, and manages a real estate portfolio worth EUR 3.9 billion. At least 80% of the Fund’s portfolio will consist of shopping centres, while a maximum of 20% will be retail shopping parks.
