F&C REIT's Best Value Germany special fund has been fully placed after receiving equity commitments from institutional investors worth EUR 170 mln. The fund size will now be around EUR 300 mln including leverage.

Launched in 2010 and distributed by F&C's Frankfurt-based institutional sales team, the fund focuses on core and core-plus properties in prime retail locations in medium-sized and large cities in Germany, with some exposure to offices.

Best Value Germany is already in its investment phase, which should be concluded by the end of 2013. F&C REIT Asset Management said EUR 30 mln has already been invested and a number of purchase agreements are expected to be completed shortly. In addition a total of EUR 150 mln worth of property investment is currently undergoing due diligence.

'We have seen strong demand from institutional investors for core and core plus properties in secondary cities in Germany,' said Iris Schöberl, managing director of F&C REIT in Germany 'The combination of more stable valuations and rental yields in comparison to those in larger cities makes these locations an ideal addition to institutional property portfolios.'