IVG raises EUR 100m for new closed-end fund

German listed property group IVG said on Thursday that it has placed EUR 100 mln worth of units in its IVG EuroSelect 21 Munich closed-end property fund in just six weeks.

The vehicle, which is targeting a total equity volume of EUR 205 mln, was set up to invest in insurance group Allianz's largest site in Germany, located in Munich's Unterföhring district.

The property consists of a central administrative building, an operations office as well as the group's largest data centre worldwide. Both buildings, which offer a combined 131,000 m2, are let to Allianz until at least 31 December 2024. The site currently houses around 6,300 Allianz Group employees, with a further 1,500 set to move in by 2014.

With a total investment volume including debt of EUR 330 mln, the IVG EuroSelect 21 Munich fund is forecast to distribute an annual 5.5%. IVG is a co-investor in the fund with over EUR 21 mln.