Rreef Fund Targets €250M Equity

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.