Deutsche Investment opens new fund to institutional investors

Deutsche Investment has established its second office real estate fund for institutional investors, Deutsche Investment — Büro II.

The new real estate special AIF has a target investment volume of €300 million ($356 million), which the firm expects to hit within a two-year investment period.

The fund will focus exclusively on cities in Germany, investing one-half of the capital in class A cities and the other half in metro regions and selected fast-growing cities. Deutsche Investment will seek to build a portfolio of office properties, which will generate at least 70 percent of its rent revenues. The firm will aim to build a broadly diversified portfolio with asset lot sizes between €5 million and €50 million. Some 70 percent of properties will follow a core or core-plus strategy, with the remaining 30 percent falling in the value-add category.

The owner of Deutsche Investment will invest in the special AIF and provide the seed portfolio for the fund.