Henderson German Retail Income Fund raises €85 million

Henderson Global Investors has raised €85 million for its German Retail Income Fund, the company announced today.

The Fund has a total of €170m firepower and will be focused solely on retail parks in Germany. Pension funds and insurance companies make up the majority of investors in the Fund, but Henderson hopes it will eventually expand to €300 million, with a target income return of 6 per cent per annum.

The first property purchased by the Fund is a 91,500 square foot retail park, located close to Cologne, which was acquired for €15 million.

“Investors in the sector benefit from stable and high cash flows which allow attractive payouts.  Present market conditions are optimal and we are confident that our wealth of experience within the European retail market has equipped us with the expertise to both source and add value to a diversified portfolio,” the company told Property Week.

Henderson expects to acquire a total of 10 to 15 properties in total, with further purchases lined up in the near future.