30 April 2015, Munich, Germany | Investment Management | News
Catella Real Estate AG has launched a new special fund, "IWS II – Wirtschaftsregion Süddeutschland" (IWS II), the successor fund of the successful "Immo-Spezial – Wirtschaftsregion Süddeutschland" (IWS I). The open-end property special AIF, which is governed by the German Investment Code (KAGB), has an equity target of EUR 150 million. Like its predecessor, it invests in the prime markets of Bavaria and Baden-Württemberg.
IWS II invests primarily in office (40-60%), retail (20-40%) and logistics properties (20-40%), and to a lesser extent in properties with other types of use, which are acquired to improve the risk distribution and ensure greater diversification. The focus is on A and B cities in Southern Germany. The forecast target return is between 4% und 5% (BVI method) during an expected term of 8 to 10 years plus two extension options of 2 years each.
According to official data, the population of Southern German is set to increase further. Unlike other regions in Germany, Bavaria and Baden-Württemberg benefit from a low unemployment rate, a large number of people in employment and low levels of public and private debt, thanks to positive economic forecasts and economically powerful locations such as Erlangen, Munich, Stuttgart or Freiburg. Other key indicators, such as purchasing power, sales and centrality rating, are also above the German average.
The successful predecessor fund, IWS I, has accumulated net fund assets of EUR 155 million since its launch in December 2011 and has so far acquired a total of 13 properties located in Nuremberg, Stuttgart, Regensburg, Augsburg and Munich, with an occupancy rate of around 98%. Because of its positive performance, many of the existing investors have increased their commitment, and this has in turn resulted in two increases in the equity volume planned for the fund. The key ingredient for an investment that delivers sustained success is tenants with good credit ratings. The credit quality of over 80% of the tenants is rated "excellent" or "very good".
"In view of the positive performance of IWS I, we are confident that we can also meet the forecasts for its successor product, IWS II. High investor demand shows how popular real estate is as an investment product in the current market", says Henrik Fillibeck, member of the Managing Board of Catella Real Estate AG.
For more information please contact:
Nadine Kratzer
Business Development Catella Real Estate
+49 89 189 16 65-44
nadine.kratzer@catella.de