Savills Investment Management has launched a new German retail fund for institutional investors with a target volume of €500 mln.
The German Retail Fund 2 – High Street Plus will concentrate on retail assets in prime locations in selected German cities, targeting a distribution yield of 4% per annum.
The fund aims to invest 30% of its capital in major cities and the remaining 70% in secondary cities with strongly performing economies. It will also consider diversifying into value-add properties.
'Prime locations in economically strong medium-sized cities offer the same long-term stability for retail investments as major cities,' said Christian Härtl, portfolio manager for the fund.
'Whilst there is a lot of competition in the German retail sector, Germany remains the number one target for international chains looking to expand their business in Europe,' said Thomas Gütle, managing director for Savills IM in Germany.
