UK asset manager Henderson Global Investors has announced the launch of a German Retail Income Fund (HGRIF). The fund recently raised EUR 85 mln of equity from insurance companies and pension funds from Germany and Austria.

With leverage, the core/core-plus fund has the firepower to invest up to EUR 170 mln in retail parks and department stores across Germany. Henderson aims to grow the fund to EUR 300 mln, with 50% equity and 50% debt.

'We have already acquired a retail park near Cologne and further acquisitions are nearing completion,' commented Thilo Wagner, fund manager at Henderson Global Investors.

The vehicle bought the Hürther Bogen retail centre for around EUR 15 mln. Opened in 2008, the asset offers 8,500 m2 of fully leased lettable area as well as 216 parking spaces.

The fund is targeting a total of 10 to 15 acquisitions of new or newly refurbished retail properties with long leases and an average of five to eight tenants.

HGRIF aims to distribute at least 6% per annum, Wagner added.