Warburg Henderson and asset manager HIH announced the launch at Expo Real of a German high-income property fund to tap into investors’ appetite for more risk.
Warburg Henderson and asset manager HIH announced the launch at Expo Real of a German high-income property fund to tap into investors’ appetite for more risk.
‘There is a wall of money targeting German real estate which is translating into aggressive pricing. It will stay this way as long as interest rates remain low, but institutional investors have an appetite for higher yields,’ Erik Marienfeldt, managing director at HIH told PropertyEU.
The Warburg Henderson Germany high-income fund, managed by the Warburg Henderson Platform with HIH as asset manager, will have a volume including leverage of about €500 mln and will offer an income return of 6%.
Equity raising started during the Expo Real fair mainly targeting pension funds and insurance companies, Marienfeldt added. ‘The seed portfolio is already secured,’ he noted, adding that the vehicle is poised to invest in a portfolio of 22 good quality office properties located across Germany.
So far this year, HIH has concluded property transactions totalling €610 mln, thus surpassing the figure of €552 mln for the whole of 2012. By year-end, the company plans to have invested €700 mln.
Marienfeldt: ‘HIH has been able to further raise its profile as premium investment partner for institutional investors.'
