- Following oversubscription as investors recognise the opportunities within German retail -
Henderson Global Investors has raised a further c.€90 million for its Henderson German Retail Income Fund (HGRIF), giving it a further c.€180 million (including gearing) of firepower to deploy in the German retail market and bringing the total fund size to c.€350 million.
The Fund now includes 12 investors, who comprise predominantly German insurance companies and occupational pension funds.
The Fund, which focuses exclusively on German retail warehouses, anchored by a supermarket operator has already acquired four assets since it’s first close in Summer 2011. These are situated in Forcheim, Köln-Hürth, Ulm-Nersingen and another close to Dusseldorf, and represent a total investment of c.€60 million.
The Fund now begins the year with a significant pipeline of further assets which fit the investment criteria for core to core plus property, dominant in its catchment area, having been recently developed or newly renovated and let to high calibre tenants. Its target income return on investment is a minimum of 6 per cent per annum with an end portfolio consisting of around twelve to fifteen assets.
Thilo Wagner, Fund Manager of HGRIF, said: “German retail warehouses were a star performer throughout 2011. They continue to offer attractive initial yields compared both to those in other countries and to other commercial sectors in Germany. The initial four acquisitions are testament to our wealth of experience and expertise within the European retail market, which have enabled us to source a suitable and diversified portfolio.”
“We are delighted that our first Henderson branded special fund, offered under German investment law, has been so well received by investors, The fact that the Fund was oversubscribed reflects the strong appetite for the Fund, which is an excellent fit for current investor requirements, providing direct access to core retail assets while simultaneously offering the experience and expertise of a highly regarded Fund team.”
Tim Horrocks, Head of Distribution for Henderson Property said: "This additional fund raising concludes a successful year for the Property business with a total capital raising of c.€ 1 billion throughout the year. We look forward to the year ahead which we enter in a strong position as we look to deploy our capital”.
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