German real estate manager launches €300m grocery retail fund

Deutsche Investment KVG has begun marketing its first investment fund in the grocery retail asset class.

Deutsche Investment – Food Retail is structured as an open-end real estate special alternative investment fund (AIF) and is targeting €300 million ($326 million) to invest in sustainable, forward-looking grocery retail locations.

The fund has already welcomed its first investors.

The investment strategy of the Deutsche Investment – Food Retail I fund is looking to assemble a diversified retail portfolio with particular focus on food markets and grocery-anchored retail parks in structurally stable regions of Germany, according to the firm.

“Due to its long-term leases with high-net-worth tenants and its stable rental yields, food retailing represents an attractive and sustainable investment product for institutional investors,” said Susanne Klaussner, managing director of DIR Deutsche Investment Retail GmbH. “Especially in the current crisis