TIAA Henderson Real Estate has raised €100m for its Core German Retail Fund.
The first close will be invested in core and core-plus German retail assets, focusing on specialist retail parks, hybrid malls and inner city shopping centres.
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TIAA Henderson Real Estate has raised €100m for its Core German Retail Fund. The first close will be invested in core and core-plus German retail assets, focusing on specialist retail parks, hybrid malls and inner city shopping centres. The target investment volume is around €400m, with a 10-year life and an expected loan-to-value of around 40-45%. With an expected distribution yield of around 5.5% annually, the fund is expected to undergo a second closing in Q1 2015. IT has also completed its first investment – the forward funding of a 120,000 sq ft supermarket-anchored scheme in the south German town of Bruchsal, completing in summer 2015 and let to anchor tenant REWE. TH Real Estate director of German investment Tihlo Wagner said: “We are delighted that the fund has been so well received by investors who recognise the strong attributes that the German retail sector can offer – an attractive distribution yield combined with prospects for further value appreciation. The Core German Retail Fund seeks assets in established, dominant locations across German metropolitan areas and medium-sized towns. Target properties have a gross rental area of at least 7,500 sq m. Asset management will play an important role in the process in order to optimise both the term of lease agreements and the tenant mix.” chris.berkin@estatesgazette.com
