German fund manager Real I.S. is transferring its Hamburger Meile shopping and office complex on the Hamburger Straße to the new Bayernfonds Deutschland 23 closed-end fund which will be marketed to investors in the third quarter.

The fund will have equity of EUR 126 mln and a total debt level of EUR 120 mln. It will aim to distribute an annual dividend of 6% over its life term of 10 years.

Real IS purchased the asset in May 2011 from a partnership of retail specialist ECE Projektmanagement and Hamburg-based developer Bruhn. ECE is retaining a 15% stake and the management of the centre.

Completed in 1970 by Bruhn Group, Hamburger Meile re-opened in April 2010 after a EUR 200 mln revamp and extension programme. The scheme offers 50,000 m2 of retail accommodation across 150 shops as well as a 15,000-m2 office tower mostly occupied by the City of Hamburg. Located in the Barmbek-Süd city district in the northern part of the city, Hamburger Meile also offers around 2,500 parking spaces.

The retail element is 99%-let with an average remaining lease term of 8.8 years.