Warburg-HIH Invest Real Estate (Warburg-HIH Invest) is launching a new multi manager investment fund. The open-ended special AIF “Warburg-HIH Immobilien Selektiv” lets institutional investors commit themselves in selected real estate funds of leading investment managers with equity stakes of €500,000 or more. The fund is marketed by the M.M.Warburg & CO bank.
“We have a new product that lets you achieve a high level of diversification while employing a comparatively small amount of capital,” said Mirco Himmel, Deputy Head of Asset Management Market at the M.M.Warburg & CO bank. “The investors we have in mind, for instance in the endowments segment and savings banks, are specifically those who wish to cover their entire real estate ratio in a single product but achieve the best possible spread at the same time.”
The strategic investment focus of the fund will be on Germany and there on the use types office, retail, logistics and residential. In addition, the fund strategy will permit investments in European core countries with a sustained positive economic performance—eligible countries currently including France, the Benelux countries and Austria. “Our objective is to set up a broadly diversified real estate fund with the risks profile Core/Core+ and an annual dividend yield of 3.5 to 4.0 percent,” said Christian Kramp, Head of Multi-Manager Business at Warburg-HIH Invest.
Under the investment approach of the “Warburg-HIH Immobilien Selektiv” fund, in-house research and real estate experts analyse the investment strategies the target funds pursue and the portfolio assets they hold. Next, the investment managers will be selected on the merits of their track record, local footprint and demonstrable long-term experience in real estate. “By combining our investment approach with our multi-stage process of auditing investment managers and target funds we seek to ensure that each property allocation is optimised for our investors,” Kramp elaborated.