Real I.S. has unveiled plans for a new EUR 300 mln investment fund focusing on German retail properties. The German fund manager is looking to raise EUR 150 mln of equity from institutional investors for the German Retail Fund. With leverage, the fund will have a spending power of EUR 300 mln.
Real I.S. has unveiled plans for a new EUR 300 mln investment fund focusing on German retail properties. The German fund manager is looking to raise EUR 150 mln of equity from institutional investors for the German Retail Fund. With leverage, the fund will have a spending power of EUR 300 mln.
The fund will have a core/core plus profile and will be targeting an annual return of 6.5%.
'We expect to make the first investment for the fund in early 2011,' says Jochen Schenk, member of the board of Real I.S, in an interview with PropertyEU.
Real I.S., the real estate asset management unit of BayernLB, has recently launched a new KAG fund management unit which allows it to run a number of speziafonds for institutional investors. So far, the group has raised EUR 400 mln of equity for its new BGV IV fund, targeting commercial real estate in Europe. 'We are planning to launch the fifth fund of the series, BGV V next year,' Schenk says. The fund will have a similar size to its predecessor and will focus on the Western European countries of France, German and the Benelux area.
Real I.S. has raised a total of EUR 650 mln of equity this year, of which over 50% for its institutional products. The figure compares to some EUR 425 mln raised in 2009, mostly generated by the group's retail investment vehicles.