Pengana in German spree

Pengana Capital has launched a new European Property Trust with $158.5 million of German retail properties as seed assets.

The Pengana Credo European Property Trust was developed through a joint venture with the Credo Group – a UK based diversified financial services group specialising in acquiring and managing commercial properties.

Credo’s managing director Gavin Rabinowitz key markets such as Germany are showing signs of economic recovery and the cost of debt finance is considerably lower than property yields.

Pengana Credo joint venture executive director Alex Vynokur said the trust has set a target of $1 billion in assets under management throughout Europe in the next few years.

The initial portfolio consists of three portfolios located in Germany including the Marilyn Portfolio comprising 24 discount supermarkets; ToombauMarkt a DIY supermarket and Peugeot Portfolio which consists of four car showrooms.

The property has a weighted average lease expiry 8.94 years by income and a forecast distribution yields of 9.25% FY 2008 and 9.35% for FY 2009.

Australian Property Journal