Aberdeen Asset Management has announced the launch of its German Urbanisation Property fund, which aims to offer investors access to a combination of residential projects and mixed use developments.
Aberdeen has already secured €150mof commitments from pension funds, insurance and other institutional clients. The aim is to grow the Fund to €1.5bn.
According to Aberdeen, residential development levels are not keeping up with demand in Germany, suggesting there is potential for further rental and capital growth. The group currently estimates that German property offers an average gross yield of 4.5%.
Fabian Klingler (pictured), head of Direct Property at Aberdeen Asset Management, comments:“The successful launch of the Aberdeen German Urbanisation Property Fund reflects the appeal of long-term, stable income streams to local institutional investors. Low construction activity relative to population growth means there is a demand-supply imbalance, particularly in metropolitan areas across Germany”
Aberdeen currently manages €5bn of assets in European property, of which over €3bn is located in Germany.