Henderson Global Investors is engaging with investors on the launch of a German Logistics Fund, a 'Spezialfonds' aimed at German and Austrian institutional investors.
The fund, a partnership between Henderson's German Property Business and Palmira Capital Partner, a specialist in logistic real estate, will focus exclusively on existing, good quality logistic assets in top locations throughout Germany. The funds target volume is 200 million to 250 million, with a 40% gearing provision. Its target return is 8.5% p.a., with an 8% return on investment.
The Fund, which has an eight year life - will mark the second German Spezialfonds for Henderson Property and follows the success of its first Spezialfonds - the Henderson German Retail Income Fund - which was oversubscribed at its final close last year and has recently completed its fifth acquisition.
Thorsten Kiel, Manager of the Fund, said: "We see the opportunity for significant performance in this relatively untapped sector. It is a niche but maturing asset class. By partnering with renowned logistics experts Palmira Capital, complemented by our German expertise and existing investor base, we believe that we are in an optimal position to enter this market."
Mathias Leidgeb, Partner at Palmira Capital Partners, said: "Palmira has significant experience in investing, managing and delivering investment performance across logistic assets. We believe that our contribution to the process, which will be incorporated at each stage, from initial introduction to the properties, through to the asset management of the portfolio will be instrumental in the success of the Fund".
Tim Horrocks, Head of Germany at Henderson Property, added: "The strategy for the Fund, involves the acquisition of existing, proven schemes with secured leases already in place. This means that we retain the benefit of the low risk associated with newer build assets but avoid the premium pricing."
The fund would target locations such as Stuttgart, Bremen, Hamburg, Munich, Frankfurt, Dusseldorf and Cologne. A seed portfolio has been identified and a first close is expected this summer.
It is being launched as a Spezialfonds in accordance with the German Investment Act. The launch of the fund is supported by Service KAG IntReal International Real Estate Kapitalanlagegesellschaft mbH, a wholly owned subsidiary of Henderson's German joint venture - Warburg - Henderson. It also provides fund administration.