Real IS, the property investment arm of German lender BayernLB, has announced the launch of a new real estate special alternative investment fund (AIF), Real IS BGV VIII Europe, with an initial target volume of around €1 bn.
The fund will focus on investments in office real estate, with a secondary focus on retail, logistics and hotel properties.
'The success of our previous BGV funds has confirmed the consistently high levels of demand from our investors for attractive investment opportunities,' said said Jochen Schenk, member of the management board of Real IS.
'The predecessor fund to BGV VIII has already been fully placed and the pledged capital fully called up. We therefore expect the new fund to be placed quickly and intend to continue the successful model of this fund series.'
As with the previous funds, the latest BGV fund will invest exclusively in eurozone countries, with a primary focus on Germany and France, supplemented by the Benelux countries and Spain.
The investment strategy of the real estate special AIF is geared to core and core plus investments and, if appropriate, complemented by properties with a manage-to-core strategy.
BGV VIII aims to build up a broadly diversified commercial property portfolio and is targeting an average annual distribution of 3.0-3.5% over a 10-year period. The loan-to-value (LTV) ratio should not exceed 50% of market value.