German asset manager Warburg-HIH Invest Real Estate has revealed plans to launch a new multi-manager investment fund for institutional capital.
The open-ended special alternative investment fund Warburg-HIH Immobilien Selektiv will allow institutional investors to commit themselves to selected property funds run by leading investment managers with equity stakes of €500,000 or more. The fund is being marketed by the MM Warburg & Co bank.
'We have a new product that lets you achieve a high level of diversification while employing a comparatively small amount of capital,' said Mirco Himmel, deputy head of asset management market at the MM Warburg & Co bank. 'The investors we have in mind, for instance in the endowments segment and savings banks, are specifically those who wish to cover their entire real estate ratio in a single product but achieve the best possible spread at the same time.'
The fund will focus on German office, retail, logistics and residential assets, with some investments in European core countries with a sustained positive economic performance, such as France, the Benelux countries and Austria.
'Our objective is to set up a broadly diversified real estate fund with the risks profile Core/Core+ and an annual dividend yield of 3.5 to 4.0%,' concluded Christian Kramp, head of multi-manager business at Warburg-HIH Invest.