German asset manager Warburg-HIH Invest has established a new office fund for 'fast-growing German cities', with a minimum target volume of €400 mln.
Called Deutschland Selektiv Immobilien Invest II, the fund includes an add-on option permitting investments of up to 30% into other asset classes.
Assuming a minimum fund volume of €400 mln and a gearing ratio of no more than 50%, Warburg said the dividend yield was expected to equal 4%. Institutional players may invest in the fund by acquiring equity interests of €5 mln or more.
'The fund invests in core and core-plus properties worth €20 mln euros or more in cities characterised by a fast demographic and economic growth,' said Alexander Eggert, managing director of Warburg-HIH Invest.
'The selection of location and asset relies on a multi-variable procedure that considers the inflow of young demographics, as well as the concentration of strong technology companies or the local demand for office accommodation,' Eggert added. Cities including Bremen, Bonn, Darmstadt, Dortmund and Dresden have already been identified as possible investment destinations.
The preceding fund, Deutschland Selektiv Immobilien Invest I, has generated an average dividend yield of 11.7% annually, according to the firm, which said that fund I was more or less fully placed with over €200 mln in capital commitments.
'Since we continue to believe in the long-term promise of the investment policy, we decided to launch another vehicle with no maturity cap.' said Carsten Demmler, head of capital management at Warburg-HIH Invest.
