Hamburg-based Deutsche Investment has launched its first investment fund in the food retail asset class, “Deutsche Investment – Food Retail I,” fund which is structured as an open-ended real estate special AIF.
The planned investment volume of EUR 300 million is intended for commitments in sustainable and forward-looking grocery retail locations. The net cash-on-cash yield targeted on the top fund level averages 5.25% – 5.50% p.a.
“Due to its long-term leases with high net worth tenants and its stable rental yields, food retailing represents an attractive and sustainable investment product for institutional investors. Especially in the current crisis situation, it becomes readily apparent that resupplying the population via the in-store food retailing segment plays a key role in Germany, and that this segment is clearly more resilient against the online competition than other retail segments,” said Susanne Klaussner, Managing Director of DIR Deutsche Investment Retail GmbH.
“In addition to the favourable parameters of its market segment for investors, the new fund is made particularly attractive by the market access of Deutsche Investment,” added Enver Büyükarslan, Partner of Deutsche Investment KVG. “Our shareholder structure allows us to acquire strategy-compliant assets for the fund any time. This way, investors can buy into the fund on short notice and without having to wait long until their funds are called.” The fund specifies a minimum subscription amount of EUR 10 million and aims for a gearing ratio (LtV) of around 45 percent.