In early march the special AIF »Four Metropolises« was cleared for distribution by the German federal financial supervisory authority (BaFin). This real estate fund regulated by German capital investment law (»KAGB«) is specialized for the development of residential properties in major German cities. The fund already convinced three German institutional investors.
An insurance company and two pension funds belong to the professional investors who subscribed to the purely equity-based semi-blind pool special fund and invested 50 million euros in the first closing process. The development of high quality residential properties in attractive locations in the German metropolises Berlin, Hamburg, Frankfurt and Munich is the investment objective of »Four Metropolises«.
In the first investment committee meeting adressing the individual objects of the fund's initial portfolio, the investors decided on the objects in Hamburg and Berlin: Curtiusstraße, Berlin Lichterfelde-West (sales volume about 22 million euros, approximately 60 residential units) and Aspelohe, Norderstedt / Hamburg (sales volume about 36 million euros; approximately 84 residential units). In addition, the decision was made that another property in Berlin Mitte is to be purchased. The 65 premium apartments have a total sales volume of 32 million euros. The planned sale proceeds of these three objects is about 90 million euros.
Overall target volume of 100 million euros
The real estate development fund diversifies by investing in at least six objects at three locations. The target return after fund costs is 8 percent IRR per year. In the second step the fund's capital is to be increased to an estimated overall target volume of 100 million euros. »Promising discussions with other institutional investors are already underway. We anticipate an additional subscription volume of around 50 million euros which we want to realize by the end of this year«, says Jürgen Uwira, Managing Director of the PROJECT Real Estate Trust GmbH. June 30th 2019 is scheduled as expiration date. »Four Metropolises« is managed by the future capital management company of the PROJECT Investment Group, the PROJECT Investment AG which is currently in the licensing process. The depositary is CACEIS Bank Deutschland GmbH.
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Press contact:
PROJECT Investment Group: Christian Blank, Head of Corporate Communication
Tel.: +49 951.91 790-339, E-Mail: presse@project-investment.de
