Henderson, Palmira plot German logistics fund

The London-based fund manager has teamed up with the Frankfurt-based logistics property firm to launch a fund focused on the 'untapped' German logistics market and on behalf of German and Austrian institutional investors.

Henderson Property the London-based property asset manager with approximately £12.5 billion (€15.6 billion; $19.57 billion) of funds under management, has launched a logistics real estate investment fund focused on Germany for which it is targeting up to €250 million of equity.

The firm announced today it had created a ‘Spezialfonds’ investment vehicle called German Logistics Fund with a view to attracting support from German and Austrian institutional investors. The fund, the second German Sezialfonds for Henderson, is to be launched via a partnership between Henderson’s German platform and a logistics real estate-focused firm called Palmira Capital Partners.

Palmira, which is led by executives including former Corestate Capital chief investment officer Alexander Hoff, will be responsible for introducing investments to the fund as well as for their asset management. The properties are expected to be existing – in other words not developments – and with secured leases already in place. Given the reduced risk associated with its investments, Henderson is pitching a return of 8.5 percent from the properties over the fund’s eight-year life.

Target cities for the fund include Stuttgart, Bremen, Hamburg, Munich, Frankfurt, Dusseldorf and Cologne and the firm said a seed portfolio of assets had been identified with a transaction expected to close this summer. The fund is expected to invest using leverage at a rate of no more than 40 percent loan to value.

Thorsten Kiel, manager of the fund, described the German logistics sector as “untapped”.  He said: “It is a niche but maturing asset class. By partnering with renowned logistics experts – Palmira Capital, complemented by our German expertise and existing investor base, we believe that we are in an optimal position to enter this market.”