Henderson Global Investors has teamed up with logistic specialist Palmira Capital Partners to launch a €250m (£200m) German real estate fund.
The Henderson German Logistics Fund is aiming to raise up to €150m of equity from German and Austrian institutional investors such as insurance companies and pension funds.
With 60% gearing, the fund could have €250m to invest exclusively in existing properties with long-term leases.
The partners are eyeing assets in Stuttgart, Bremen, the Rhine-Main area and the Ruhr area to seed the vehicle.
Henderson said the niche area with limited competition offered the opportunity for significant performance.
The intended holding period of the properties is expected to be seven to eight years.
Henderson is aiming for a distribution yield of 8% and a total return of 8.5% per year.
The first closing is scheduled for the end of July 2012. The first acquisitions would be undertaken immediately, in order to invest the capital quickly.
Palmira, which has more than 30 years’ experience in investment, management and development of logistics assets in Europe, will advise on investment strategy during the selection and purchasing process.
