Fabian Klingler
Fabian Klingler
According to board member Fabian Klingler, “This secures entry at early project planning stages and enables us to influence planning. The liquidity premium from the project developers will be a long-term profit plus for our investors.”
The German unit of UK’s Aberdeen Asset Management has launched a further Spezialfonds focused on housing and retail in German growth cities, and has already raised €100m of equity through an initial placement.
The "Aberdeen German Urbanisation Property Fund", which has a target volume of €1bn to €1.5bn, will invest in inner city residential and retail assets, with a focus on new-build properties. Residential will make up 70% of the volume. The fund aims to buy assets before the start of construction in forward deals over the next five years, with the fund expected to have a "very long" duration.
According to board member Fabian Klingler, “This secures entry at early project planning stages and enables us to influence planning. The liquidity premium from the project developers will be a long-term profit plus for our investors.” The targeted return is a BVI yield of 5%, with a 3%-4% dividend payout.
Aberdeen also aims to sidestep competition for prime assets through this focus on developments. “Given the large demand overhang in the largest cities, our strategy secures investors access to prime properties with long-term stable cash-flows and the lowest volatility in all asset classes,” said Germany country head Hartmut Leser. “They are participating in the strong urbanisation effect which will shape our urban landscapes beyond this decade.”
He expects the supply-demand imbalance for modern living space in the large conurbations to continue over the long term, driven by insufficient building and the parallel increase in numbers of German households.
About €100m of commitments were secured in a first closing for the fund. Apart from large institutional investors, smaller professional ones with a long-term investment horizon can also subscribe, said Aberdeen, albeit only via third-party financial intermediaries.
Aberdeen offers seven property Spezialfonds for institutional investors in Germany and serves several property mandates. Over the past five years, it bought more than 80 residential assets with 10,500 units for €2.6bn. It currently has €4bn in assets under management and targets €7bn-€8bn by 2020.
