The property fund management joint venture between Henderson Global Investors and M.M.Warburg & CO KGaA, Warburg - Henderson Kapitalanlagegesellschaft für Immobilien mbH (KAG), has announced the launch of its first fund, Deutschland Fonds Nr.1.

The fund's strategy is to invest primarily in the office sector in the major German cities, actively seeking higher yielding opportunistic purchases and properties with value adding potential. The properties will be sourced and managed by M.M.Warburg & CO KGaA's property asset management subsidiary, HIH Hamburgische Immobilien Handlung GmbH.

The fund's tax efficient structure has helped attract foreign investment to Germany. The Dutch pension fund for the Metalworking and Related Technical Sectors (BPMT), represented by Mn Services Investment Management, is lead and seed investor in the fund with an equity commitment of EUR 60 million. The fund is expected to grow to around EUR 300 million in equity commitments.

Erwin Stouthamer, director International Real Estate of Mn Services, said, "In Warburg - Henderson, we have an excellent local partner to access opportunities in a real estate market undergoing significant structural change and turbulence."

Warburg - Henderson provides a unique combination of German and international fund management expertise and is an ideal vehicle for institutions seeking exposure to Pan-European property markets. The KAG is currently developing core products on both a Pan European and country basis, which are planned for launch early in 2003.