Global real estate manager AEW has launched the City Office Germany fund, with commitments of €118 mln from a number of institutional investors.
The fund is targeting total equity of up to €250 mln, which will deliver an investment firepower of €500 mln assuming a maximum loan to value of 50%.
'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,' commented Sebastian Grobe, investment manager at AEW in Germany. '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.'
The fund will focus on acquiring office assets in Germany’s seven leading cities, as well as opportunities across the country’s other established office locations which are forecast to experience strong rental growth.
'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,' concluded Marc Langenbach, head of fund management & separate accounts, Germany at AEW.