Munich-based asset manager and investment company Real IS is to continue its BGV institutional fund series with the launch of BGV VI, a fund with spending power of €650 mln.
Munich-based asset manager and investment company Real IS is to continue its BGV institutional fund series with the launch of BGV VI, a fund with spending power of €650 mln.
The new fund will focus on office and retail real estate, with logistics assets and budget hotels conceivably thrown in to supplement the portfolio. Up to 70% of the planned investment volume is to be committed in Germany, while France will account for between 20 and 40%, and Benelux no more than 40%.
'We continue to see high demand for this broadly diversified product,' explained Jochen Schenk, member of the board of Real IS, adding that the predecessor fund, BGV V, has concluded its fundraising phase and is in the process of completing its property acquisitions.
'We were able to set up a well-rounded portfolio of assets spread across Europe for the current funds. We now intend to take the experience and market access we have gained and put them to work toward this new fund,' he added.
Real IS has secured a slew of investments worth approximately €200 mln in the recent past. 'Even commitments outside the eurozone are conceivable. We are talking to potential investors about a product that might invest in the UK, in Poland and in Australia in addition to the eurozone,' he noted.
Real IS predicts annual distributions of 4.75 to 5% on average for the BGV VI. The first asset, a shopping centre in Lower Saxony, has already been earmarked for the fund, which has a core and core-plus investment strategy.
