TIAA Henderson launches €400m German retail fund

TIAA Henderson Real Estate is to launch a German retail fund with a target investment volume of €400 mln.

The Core German Retail Fund will invest across retail parks, department stores, malls and inner-city shopping centres. The fund is targeting a return of 5.5% per year over a 10-year life, with an expected loan-to-value ratio of 40% to 45%.

TIAA Henderson Real Estate's Thilo Wagner, who will run the fund, said: 'Target properties will have a gross rental area of at least 7,500 m2. Asset management will play an important role in the process in order to optimise both the term of lease agreements and the tenant mix.'

The news came as the International Council of Shopping Centers opened its European annual conference in Istanbul, and a day after TIAA Henderson (TH Real Estate) was launched following the merger of the European and Asian real estate businesses of US financial services group TIAA-CREF and UK-based fund manager Henderson Global Investors.