Italian asset manager Prelios has launched its first German real estate fund with a capital target of €280 million.
The closed-end vehicle, Prelios German Retail Property Fund Germany (PGRRFG), will have a core-plus strategy with a focus on shopping centers, department stores and high street retail units. The fund will be aimed at German and international institutional investors.
Prelios will invest in assets with a €20 million-plus value in Berlin and western German cities with a catchment area of at least 100,000 people. The loan-to-value ratio will be a maximum of 35 percent to 40 percent.
PGRRFG is still subject to approval by the Luxembourg financial regulatory authorities, though approval is expected by mid-2016. The fund is anticipated to open in early 2017.
The firm’s German arm, Prelios Immobilien Management (PIM), will manage the fund and the Frankfurt-based company will also provide a separate account management service for investors without their own platform in Germany.
Nico Tates, head of investment management at Prelios, said: “We will exclusively invest in underperforming properties with upward-potential. We plan to invest whenever we identify significant value-add potential through optimisation and repositioning. Prelios is able to offer all relevant services in-house and has a track record in refurbishment and the management of retail real estate as well as an experienced fund management team.”
Prelios manages 29 funds in Italy with a total of €3.5 billion of assets under management, while in Germany it has €2 billion of assets under management.