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ILG holds €150m first close on debut institutional fund

The Munich-based real estate asset manager’s new fund is the first in the firm’s 31-year history which is not aimed at its traditional retail investor base. 

ILG Group, the Munich-based real estate asset manager, has announced a first close of €150 million on its first investment fund aimed at institutional investors.

The firm, which has traditionally targeted retail investors, launched ILG Einkaufen Deutschland I, the new open-ended vehicle, in April and will target German banks, pension funds and insurance companies for the first time. Within four months of the launch, ILG said it had secured €150 million of commitments from “numerous” institutional investors.

The fund, which has a €400 million target, will be used to acquire “large-scale” assets in the German retail sector. It is understood ILG will be looking to make between eight and 12 transactions on behalf of the vehicle, with an approximate price range of between €30 million and €50 million per deal.

“The fund’s investment strategy received positive feedback from our target investors, which meant that we were able to receive €150 million in equity commitments from numerous investors for our first closing,” said Dr Jan Friske, managing partner of ILG Capital, the arm of the business now responsible for institutional clients. “The fund is aimed solely at German institutional investors like banks, pension funds and insurance companies,” he added.

Since the business was formed in 1984, ILG has managed 41 real estate investment funds on behalf of German retail investors, with the vast majority of the vehicles being closed-ended. The firm has historically targeted a number of propertysectors but focused geographically on Germany, and will continue to do so for its new institutional fund. However, it is understood ILG is looking at opportunities in Italy, Switzerland and Austria for future funds.

A spokesman for the firm said ILG’s total investment volume exceeds €1 billion and at present it manages approximately 5.75 million square feet of retail space, with an average occupancy rate of 99 percent.