Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

MUNICH-Deutsche Bank's alternative assets group Rreef is launching a German Special Fund to target office and retail income-driven core assets around Europe, especially in UK, France and Germany, says its new Managing Director Georg Allendorf.

He told PFE the new European Core Recovery Fund is aiming for €250 million of equity, and will continue to take institutional commitments at least through 2010. Leverage legal limit is 50% but the fund is unlikely to seek debt financing above 40% or 45% so that final target AUM will be somewhere between €400 million and €500 million. "We will be investing in 2010 and 2011," Allendorf says. "German Special Funds don't really have a cut-off; you can raise commitments indefinitely, so actually we are cutting ourselves short." Target investors are German institutions, including pension funds and foundations.

"The preferred asset profile is core investments...prime assets in major locations throughout Europe--very traditional," Allendorf tells PFE. "We aim to have the majority of fund returns coming from income. We are not really value-appreciation seekers but believe this is a good time to acquire very strong assets that offer substantial cash-flow."