Henderson Global Investors, on behalf of its German business Warburg-Henderson KAG, has begun marketing for its special property fund - Warburg - Henderson Österreich Fonds Nr. 2. The fund, aimed at institutional investors in Germany, Austria and Switzerland, will invest in a diversified office and commercial property portfolio in Austria. It aims to achieve an annual total return on capital of 7%.
The investment focus is on core to core-plus retail properties across Austria as well as office properties specifically in Vienna. It plans to acquire between 10-15 assets. Once geared, the Fund hopes to reach a capital of up to 300 million.
Eitel Coridaß, Managing Director at Warburg - Henderson, who will be responsible for the portfolio management, said: "The Austrian real estate market is ideally suited for investors who want to diversify away from existing investments in Germany. Like Germany, the robust letting market - a result of the strong economy - demonstrates stability. But in addition, the proximity and close links with central Europe offer further growth drivers"
In the past, capital investment companies had to automatically retain 25 per cent of withholding tax on rental income and profit from increases in property value for such investors. However, German tax-exempt insurance institutions have benefited from recent decisions by the Independent Fiscal Tribunal in Vienna which no longer require them to pay taxes on their income from Austrian and German property investments.
Henderson Global Investors Immobilien Austria GmbH (HGI Austria), a joint venture between Henderson Global Investors and Vienna-based insurance institution Wiener Städtische Versicherung, will be responsible for the asset management of the fund. It currently manages property assets in Austria amounting to around 400 million. "HGI Austria has already provided an excellent service for the fund's predecessor, and was integral to the fund's success. The team possesses sound knowledge of local markets and boasts an impressive network which allows direct access across a broad range of major market players. Its expertise stems from its ability to detect suitable opportunities that offer value enhancement or rental potential, and in the implementation of the strategies that follow on from this." explains Coridaß.