Institutional investors can now invest in a new commercial property portfolio aimed at office spaces.
Deutsche Investment, a leading real estate investment group, has announced the launch of its second office real estate fund, named "Deutsche Investment - Office II". The new fund is aimed at institutional investors, with Enver Büyükarslan, shareholder of Deutsche Investment KVG, highlighting the performance of the group's first office real estate fund, "Deutsche Investment - Office I", as a testament to their expertise.
Investment Strategy and Performance
While detailed, specific information on the investment strategy, performance metrics, and key features of "Deutsche Investment - Office II" are not publicly detailed in the provided search results, it is known that the fund will focus its investments exclusively on locations in Germany. Properties valued between €5 and €50 million with high third-party usability and predominantly multi-tenant tenant structures will be acquired.
Approximately half of the investments will be in A-cities and metropolitan regions, while the other half will be in selected growth cities. The fund aims for a total lifespan of ten to twelve years. At least 70 percent of the acquired properties will fall into the Core and Core+ risk classes, while the share of Value Add properties will not exceed 30 percent.
Performance of "Deutsche Investment - Office I"
"Deutsche Investment - Office I", launched in September 2018, has generated a total return of 52.3 percent and an annual return of 16.7 percent. The fund's anticipated total internal rate of return (IRR), including debt capital, is at least 4.5 percent, and the expected annual distribution yield is approximately 4.0 to 4.5 percent. The fund IRR for "Deutsche Investment - Office I" since launch is 17.7 percent.
Acquisition Review Phase
Klaudia Spychala, responsible transaction manager for the office asset class at Deutsche Investment KVG, confirmed that the first strategy-compliant objects for "Deutsche Investment - Office II" are in the acquisition review phase.
Regulatory Approval
The Federal Financial Supervisory Authority (BaFin) has granted approval for the new real estate special AIF. The Deutsche Investment Group will provide fund, asset, transaction, property, and facility management for "Deutsche Investment - Office II".
Participation and Minimum Subscription
Deutsche Investment's shareholder will participate in "Deutsche Investment - Office II" as part of the inventory strategy and will provide the initial portfolio. The minimum subscription amount is €10 million.
For more detailed, specific information on "Deutsche Investment - Office II", it would typically be found in official Deutsche Investment fund documents, prospectuses, or on their dedicated website, which might require direct access or contacting Deutsche Investment representatives. It is clear, however, that "Deutsche Investment - Office I" has demonstrated that carefully selected and well-managed office properties can contribute significantly to the portfolio of institutional investors with a moderate risk profile.
- The new real estate special AIF, "Deutsche Investment - Office II," has a focus on investment that falls under finance, as it aims to acquire properties valued between €5 and €50 million for office real estate in Germany.
- Investors will find information regarding the performance of "Deutsche Investment - Office II" in official Deutsche Investment fund documents, but the performance of its predecessor fund, "Deutsche Investment - Office I," demonstrates an impressive return of 52.3% and a moderate risk profile, making it an attractive insurance for institutional investors.
