German fund manager Hansainvest is creating a real estate special fund to invest in residential assets in the US.
The fund, which is set to have a voume of cerca $1 bn, will be launched in collaboration with Bell Partners, one of the largest apartment investment and management companies in the US.
The fund − known as HANSA US Residential − is geared towards institutional investors who want to be involved with core residential properties in the US.
'Bell Partners is an excellent partner for HANSA US Residential,' said Nicholas Brinckmann, managing director of Hansainvest, adding that a Bell investment entity will also invest in the fund as a co-investor. 'This will enable us to be aligned and have common interests shared by the investors and our local partners,' he explained.
'The positive development of the overall economic and demographic data provides a clear argument in the long term for investments in the US residential real estate market. This was what ultimately prompted us to decide to create a US fund. What’s more, the legal framework makes it possible to increase rent for residential real estate in the US at much more regular intervals than here in Germany,' Brinckmann concluded.
The target fund volume is $1 bn, and plans call for equity of some $500 mln. The distribution yield for investors is forecast at 4.5 % p.a. The fund will be traded under the legal form of a German real estate special fund in accordance with the German Capital Investment Code.
Geographically, Hansainvest said the fund would invest in metropolitan areas with positive demographic and economic fundamentals, acquiring assets with a volume of between $50 mln and $100 mln, including high-rise residences.
Donner & Reuschel Aktiengesellschaft will serve as custodian.
