Warburg-HIH Invest has announced the launch of a new fund focusing on offices in Germany's seven largest cities.
The Top 7 German Office Invest vehicle is targeting investments of between €400 mln and €1 bn in the German metropolises of Berlin, Munich, Frankfurt, Hamburg, Düsseldorf, Cologne and Stuttgart.
'The main target group on the investor side includes savings banks as well as other institutional investors with persistently large investment requirements,' said Alexander Eggert, managing director of Warburg-HIH Invest. 'Clients of this type are primarily interested in regular dividends and simultaneously in a continuation of their investments.'
At least 70% of investment will be aimed at core assets occupied on long-term leases. The remaining 30% will be spent on core-plus properties with letting requirements and higher return potential.
'We intend to achieve a dividend yield between 3.5 and 4.5%,' added Eggert. 'Decisive for the success of such a product are a demand for office accommodation that will remain strong in the targeted top cities in the foreseeable future, positive rental growth and an attractive product pipeline.'
