Hauck Aufhäuser Lampe Privatbank’s real estate investment management division (HAL REIM) has introduced its second specialised real estate fund focused on social infrastructure in Germany. Developed in collaboration with IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH, the new fund, ‘HAL Social Infrastructure Germany 2’, will concentrate primarily on outpatient healthcare properties, such as medical centres and health facilities. The fund plans to invest mainly in core and core-plus properties, with a value-add strategy comprising approximately 30% of the portfolio. This strategy includes the acquisition of properties offering potential for conversion, densification, additional construction, or redevelopment. ‘HAL Social Infrastructure Germany 2’ is structured as a pure equity fund with a target volume between EUR 150 million and EUR 250 million. It aims for a cash-on-cash return exceeding 4.75% per annum over a ten-year forecast period. Initial commitments have been secured from two seed investors in the banking and insurance sectors, with the first closing exceeding EUR 30 million. Two properties are currently under exclusive purchase review, and the first acquisition is expected to be completed in the coming weeks. Patrick Brinker, Head of Real Estate Investment Management at Hauck Aufhäuser Lampe Privatbank, noted that the fund structure aligns with the regulatory requirements introduced under CRR III and Solvency II. According to Brinker, equity funds generally require lower capital reserves than debt-financed funds, offering more favourable returns on invested capital for regulated institutions. This fund follows the ‘H&A Soziale Infrastruktur 1’ launched in 2019, which is fully invested with 15 properties and total real estate assets of approximately EUR 250 million. It has maintained an average annual distribution yield above 4.5% and is classified under Article 8 of the EU Disclosure Regulation. Felix Rotaru, Director Healthcare at Hauck Aufhäuser Lampe, highlighted the growing demand for outpatient medical infrastructure, driven by demographic changes and policy trends favouring a shift from inpatient to outpatient care services.