© visualtektur. - Fotolia.com
Property investment manager Cordea Savills launched its first German Spezialfonds for institutional investors earlier this month. Cordea Savills Real Invest 1 raised €65m in equity at its first closing from a group of German insurance companies, and also signed its first deal.
The fund’s strategy is to focus on modern offices or mixed used buildings in Germany’s top seven cities, with lot sizes of between €30m and €70m. Its first concluded transaction is a forward commitment to purchase the Dortmunder U – Das Viertel, a public-private partnership project comprising two vocational colleges which will offer places for 6,000 students, Cordea Savills said. Completion of the project, being built by Hochtief's PPP Solutions, its development arm, and Kölbl Kruse, is scheduled for end-2015. The two colleges will be leased on a fixed basis by the City of Dortmund for 25 years.
According to Hans Dieter Martin, managing director of Cordea Savills Invest GmbH,“The transaction will form the foundation of our first BaFin-regulated investment fund in Germany. The fund will be seeking further assets in the near term providing immediate and diversified rental income.”