Henderson to launch EUR 200m German logistics fund with Palmira Capital

Henderson Global Investors said on Monday it is engaging with investors on the launch of a German Logistics Fund, a ‘Spezialfonds’ aimed at German and Austrian institutional investors.

The fund, a partnership between Henderson’s German Property Business and Palmira Capital Partner, a specialist in logistic real estate, will focus exclusively on existing, good quality logistic assets in top locations throughout Germany. The funds target volume is EUR 200 mln to EUR 250 mln, with a 40% gearing provision. Its target return is 8.5% per annum, with an 8% return on investment.

The fund, which has an eight year life, will mark the second German Spezialfonds for Henderson Property and follows the launch of its first Spezialfonds - the Henderson German Retail Income Fund - which was oversubscribed at its final close last year and has recently completed its fifth acquisition.

'We see the opportunity for significant performance in this relatively untapped sector. It is a niche but maturing asset class,' commented Thorsten Kiel, manager of the fund.

The fund would target locations such as Stuttgart, Bremen, Hamburg, Munich, Frankfurt, Dusseldorf and Cologne. A seed portfolio has been identified and a first close is expected this summer, Henderson said.