UK-based property advisory group PMM Partners has launched its second German Property fund, Phoenix Spree Deutschland. The fund will raise up to £50 mln (EUR 73.5 mln) to invest in German residential and commercial property. It will be domiciled in Jersey and will be listed on the Channel Islands Stock Exchange (CISX). The fund is targeting an annual return of 20% and equity will be raised from a combination of high net worth investors and institutions.
UK-based property advisory group PMM Partners has launched its second German Property fund, Phoenix Spree Deutschland. The fund will raise up to £50 mln (EUR 73.5 mln) to invest in German residential and commercial property. It will be domiciled in Jersey and will be listed on the Channel Islands Stock Exchange (CISX). The fund is targeting an annual return of 20% and equity will be raised from a combination of high net worth investors and institutions.
PMM said that Germany is the most attractive property market in Europe, as property values had fallen there over the last decade, in contrast to the UK and other markets. The Phoenix Spree Deutschland fund will invest in either individual buildings or small portfolios, with a particular focus on the residential market and specialised commercial markets, such as care homes. PMM is targeting an average purchase yield of 7.4%, and a purchase price of EUR 1,000 per m2. This is about a quarter of the UK average per m2.
The company's first German fund that invests exclusively in residential properties closed last year.
