Two German institutional investors have hired Warburg-Henderson to create pan-European real estate portfolios each worth than €100m.
The two unnamed investors – a “large foundation” and a Pensionskasse of a “large German company” – have committed capital in the ”low, triple-digit-million-euro” range, Warburg-Henderson said.
Warburg-Henderson has already bought a retail property in Glasgow for €27.5m for one of the funds.
A spokesperson for Warburg-Henderson said one of the mandates will focus on retail, while the other would concentrate on office, depending on the diversification needs of the investors.
Both will invest in core and core-plus real estate in “various European markets” with several purchases already being negotiated in Spain, France, Italy and Poland.
Warburg-Henderson said the new mandates reflected growing interest among German institutions for pan-European property investments.
Warburg-Henderson is looking to increase its resources accordingly. It recently hired Olaf Fortmann from Behringer Harvard who is now managing one of the new individual mandates.
The two funds will be structured as “Spezial AIF” under the new Kapitalanlagegesetzbuch (KAGB).
To set up such funds former Kapitalanlagegesellschaften (KAG) had to reapply for a license as Kapitalverwaltungsgesellschaft (KVG).
Warburg-Henderson noted it was still in talks with the German regulator BaFin and that it was “confident to gain the approval as KVG by the end of the year”.
