The Hahn Group has attracted further subscription commitments over the past few weeks for the institutional HAHN-FCP-FIS German Retail Fund that it manages jointly with LRI Invest S.A.
The new subscriptions raise the total volume subscribed by 60 million, to 262 million, compared with the end of 2011. This corresponds to about 87% of the planned total equity of the fund (300 million).
The institutional investors in the Luxembourg-based HAHN FCP especially insurance companies and pension funds from German-speaking Europe are investing in a real estate fund, founded in 2008, that invests exclusively in large-scale retail properties in Germany.
The target return of the fund, which as planned distributes dividends of 5.5% per year, is 8%. Real estate holdings currently comprise 19 properties, with a total investment of 382 million (gross fund assets: 407 million). The high occupancy of nearly 100% and the average remaining term of about 10 years on the leases demonstrate that the portfolio is maintaining its value well.
150 million in planned real estate investments
The new subscription commitments give HAHN FCP the resources to increase its real estate assets in the near future by about 150 million.
The fund preferably invests in core properties and to a limited extent also in value-added properties, meaning properties that have correspondingly greater potential for appreciation.
"We're delighted that investors continue to show such interest in our HAHN FCP institutional fund. The new subscription commitments reconfirm the quality of our work as a specialized asset and fund manager for retail properties," said Thomas Kuhlmann, a member of the Hahn Group's Board of Management.
"We have a very promising acquisition pipeline, and are now able to invest the fund's available resources expeditiously in attractive properties. As a type of use, retail continues to offer above average potential for returns and appreciation."
Source: Hahn Group