EUROPE - The Warburg-Henderson KAG in Germany has acquired a property in London's Neal Street for its KOOP fund, which it has set up for local pension funds.

In February, four German municipal pension schemes pooled funds to commission the UK/German joint venture Warburg-Henderson to set up a €300m pan-European property Spezialfonds.

The €19m purchase in London is the third property added to the fund since its inception in March, and it is the first purchase made outside Germany.

International clothing group Mango has rented all of the 500 square metres of space in Neal Street for another 13 years.

The real estate company pointed out that the net initial yield for the property amounts to 5.25%.

Eitel Coridaß, managing director responsible for portfolio management at Warburg-Henderson, said: "Particularly in Great Britain, we see a major spread between regions and types of property."

He said the Covent Garden area, where the property is situated, was already among the top-locations for retail and that it was set to improve even more in future.

"The property offers cash flow stability and an additional increase in value from the reconfiguration of the space after the end of the 13-year rent agreement."