Deutsche Asset & Wealth Management’s real estate investment business has launched a new open ended real estate fund, grundbesitz Fokus Deutschland.
This is the first open ended real estate mutual fund to be launched by Deutsche Bank Group under the new Capital Investment Code (KAGB).
Distribution of fund units will be launched nationally through all Deutsche Bank branches from 1 October 2014.
With a focus on Germany, the fund objectives include a broadly diversified real estate portfolio including buildings in select locations and for varied usages. The portfolio will offer a balance in terms of locations, buildings, tenant structures and lease durations. Fund assets will primarily be real estate with a sector allocation across office, retail, residential, logistics and hotels in growth regions within Germany. Medium-sized cities will be considered as well as metropolises.
Units in grundbesitz Fokus Deutschland can be bought on a continuous basis daily with capital committed in phases. When units are redeemed a deduction of two per cent will be charged as at 31 December 2019. This will ensure stable liquidity for the fund as well as underpinning the long-term characteristics of the fund.
Given the legal requirements of the Capital Investment Code, the fund must be held for a minimum duration of two years with a notice period of one year.
The fund is primarily targeted at private investors interested in fixed asset investment and a long-term investment horizon. The minimum subscription sum is EUR50. Equity capital may be up to EUR700 million.
Ulrich Steinmetz, head of open ended real estate funds for DeAWM, says: “Under the new legal framework, this is the right time to invest in fixed assets and to launch a new open ended real estate fund. Alongside our existing global and European focused funds, the grundbesitz Fokus Deutschland offers our investors a third product that is clearly differentiated, focused and underpinned by our extensive real estate expertise.”
DeAWM has appointed a new fund manager, Anke Weinreich, to coincide with the fund launch. A structural engineering graduate, she has worked for DeAWM for the past 11 years in real estate fund management.