Savills Investment Management has launched a fund focusing on German retail.
German Retail Fund 2 – High Street Plus will invest in town centre prime locations across the country.
Savills IM said that while the sector was highly competitive, retailers’ growing interest in Germany would provide long-term stability for investors.
Portfolio manager Christian Hartl said other funds had focused on the larger German cities, and that “it therefore makes sense to capitalise on the opportunities available in mid-sized cities”.
Just 30% of the fund’s investment will be in the major cities, with the balance in economically strong regional towns.
It has a target size of €500m (£394m) and is aiming for a distribution yield of 4% pa over its life.
The first property for the fund is in Regensburg’s prime shopping area, an attractive location with good urban planning, according to Savills IM.
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