AEW announces the launch of the City Office Germany fund with commitments of €118m from a number of institutional investors. The Fund is targeting total equity of up to €250m, which will deliver an investment capacity of €500m assuming a maximum loan to value of 50%.
The Fund strategy will focus on the acquisition of office assets in Germany’s seven leading cities, as well as selective opportunities across the country’s other established office locations which are forecast to experience strong rental growth.
Sebastian Grobe, Investment Manager at AEW in Germany, said: “German office markets are experiencing robust tenant demand with limited supply of quality space, in part due to the conversion of office assets to alternative uses. We will seek to deploy capital into locations that are underpinned by strong and growing economic fundamentals, and have secured a pipeline of opportunities which are under exclusivity.”
Marc Langenbach, Head of Fund Management & Separate Accounts, Germany at AEW commented: “The City Office Germany fund complements AEW’s existing European funds and we expect to continue demonstrating our ability to source attractive investment opportunities for our clients and to generate value, in what is an increasingly competitive investment market.”
