EUROPE – German Master-KVG Institutional Investment Partners (2IP) has launched its first Investors Club Fund for institutional investors.
Andreas Peppel, head of investor club funds, told IP Real Estate that 2IP decided to offer the funds in particular for “niche markets or segments”, to satisfy growing demand among its clients.
Within the pooled fund solution, through a master fund structure, asset management and administration will be separated.
“In advance,” Peppel said, “we will make a detailed pre-selection of several managers that are all well-performing local experts.”
The lead investor or the investor club can then choose from this list and have the fund set up using a German or Luxembourg Spezialfonds structure.
As a first target market, the Master KVG has identified Spain, for which it launched the Selected Spain Recovery Strategies in cooperation with Jones Lang LaSalle Corporate Finance.
The focus will be on the “perceptively recovering office and retail markets of Madrid and Barcelona”.
Peppel argued that, “due to the positive signals of the Spanish economy, many institutions have Spain on their list of possible investments”.
He added that “the timing was pretty good” and what investors needed was a local asset manager to access these markets.
Peppel said there was an 18-month window for the asset manager to perform property acquisitions.
The German Spezialfonds will have a maximum duration of eight years.
The fund size will range between €120m and €200m of equity, with approximately 35% leverage.
Investors will be able to choose their own risk profile by deciding which properties to include, be they core, core-plus or value-added.