IVG Immobilien's private fund business has launched a new closed-end real estate fund which will invest in a 131,000-m[sup]2[/sup] office and data centre fully leased to German insurance giant Allianz.
IVG Immobilien's private fund business has launched a new closed-end real estate fund which will invest in a 131,000-m2 office and data centre fully leased to German insurance giant Allianz.
In a statement on Monday, IVG said the fund, EuroSelect 21 Munich, has already raised EUR 50 mln from investors since the start of January and is looking to reach a volume of EUR 205 mln. With leverage, the vehicle will have the capacity to invest a total of EUR 330 mln. IVG is a co-investor in the fund, with a 10% stake.
Located in Unterföhring, a district of Munich, the complex consists of a central administrative building and an operations building occupied by Allianz through end-December 2024. The site performs Europe-wide IT infrastructure services for the Allianz Group and also boasts one of Germany's largest digital print shops.
'The attractive location, the quality of the building and the financial standing and future prospects of the tenant mean that investors can obtain stable yields,' said IVG's board member Christian Kühni. The fund is expected to distribute an annual 5.5% to its investors.
IVG Immobilien is one of the leading listed real estate companies in Europe with assets under management valued at EUR 22 bn.
