TIAA Henderson Real Estate has raised approximately €100m in a first close for the Core German Retail Fund it announced earlier this year.
The fund, which TH Real Estate is hoping to raise €400m in total, will invest in core and core-plus assets, including specialist retail parks, hybrid malls and inner-city shopping centres.
TH Real Estate expects to have invested all the capital from the first close by the end of the year. A second close is planned for early next year.
The fund has completed its first investment: a forward commitment to a 11,000sqm supermarket anchored retail scheme in the southern German town of Bruchsal.
The asset, which is located in the centre of Bruchsal, immediately adjacent to the main station, will be completed in the summer of 2015.
The 10-year fund is targeted a 5.5% annual distribution yield, employing 40-45% leverage.
Thilo Wagner, fund manager and director of investment, Germany at TH Real Estate, said the fund is seeking “assets in established, dominant locations across German metropolitan areas and medium-sized towns.”
He added: “Target properties have a gross rental area of at least 7,500sqm. Asset management will play an important role in the process in order to optimise both the term of lease agreements and the tenant mix.”
