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TIAA Henderson Real Estate raises c.€100m for Core German Retail Fund

TIAA Henderson Real Estate (TH Real Estate) has raised c.€100m capital for its Core German Retail Fund (CGRF). The first close provides TH Real Estate with substantial firepower to invest across core and core-plus German retail real estate. It will target specialist retail parks, hybrid malls and inner city shopping centres. The target investment volume is c.€400m, with an anticipated distribution yield on the invested capital of c.5.5% per annum. The Fund has a ten year life and expected LTV of c.40-45%. A second closing for the Fund is planned for Q1 2015.

The Fund has completed its first investment – a forward commitment to a 11,000 sq m supermarket anchored retail scheme in the southern German town of Bruchsal. The asset, which is located in the centre of Bruchsal, immediately adjacent to the main station, will be completed in summer 2015. The anchor tenant is the German food retailer REWE.

With further assets in the pipeline, the Fund expects to invest all capital from the first close by the end of the year.

Thilo Wagner, Director of Investment, Germany at TH Real Estate, and Fund Manager for CGRF, said “We are delighted that the Fund has been so well received by investors who recognise the strong attributes that the German retail sector can offer - an attractive distribution yield combined with prospects for further value appreciation. The Core German Retail Fund seeks assets in established, dominant locations across German metropolitan areas and medium-sized towns. Target properties have a gross rental area of at least 7,500 sq m. Asset management will play an important role in the process in order to optimise both the term of lease agreements and the tenant mix.” 

This press release intended for trade press only. Please do not redistribute. Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.


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