Greenman Investments is to transform its closed-end German retail property fund into an open-ended vehicle that it can market to investors in France, the Netherlands and Scandinavia.
The alternative investment fund manager, which is based in Dublin and Berlin, said that 90% of the investors in its Greenman Retail+ closed-end fund, governed by Luxembourg law, had approved the conversion.
The move will create an open-ended investment fund called Greenman OPEN, again under Luxembourg law. The current fund has eight German retail assets with a combined lettable area of 48,410 m2 and a volume of €120 mln. In 2017, Greenman OPEN will seek to acquire further retail parks, hybrid centres and supermarkets to the volume of €190 mln.
Greenman said that the newly converted fund will enhance investors' flexibility, giving them the option to subscribe to the fund on a quarterly basis or to redeem their shares quarterly. Distributions will also take place regularly on a quarterly basis. The investment fund will target a cash-on-cash return of 5.5% and an annualised total return of 8%.
'The high percentage of investors who voted in agreement of our strategy reflects the current investment climate where investors are seeking consistent returns. With about 67% of our portfolio let to Germany's leading food retailers on long term leases, our investors are very confident that we can deliver the returns that they expect,' said John Wilkinson, CEO of Greenman Investments.
In the second half of 2017, Greenman, as an Alternative Investment Fund Manager (AIFM), will expand the investor base and use its fund passport to market the open-ended vehicle to investors in France, the Netherlands and Scandinavia.