IVG issues new Paris fund for institutional investors

IVG Institutional Funds has issued a Paris-focused real estate investment fund with a volume of around EUR 250 mln. The fund has a term of 10 years.

The first closing took place in early February with equity raised from four institutional investors. At the same time the fund secured its first acquisition with the purchase of a retail-led asset in an inner-city location with an initial yield of 5.4%. The lease on the newly-refurbished asset has a remaining term of 10 years.

The fund, which has a club deal structure, allows a maximum of six investors to participate each with a minimum investment of EUR 15 mln. 'The great interest in our new Paris Fund emphasizes the trend towards regional structured products with a clear focus on preferred inner-city locations,' said Bernhard Berg, managing director of IVG Institutional Funds.

The new IVG Paris-Fund will invest solely in office and retail properties in central Paris and will benefit from rental growth in this area. The core strategy of the new fund is aimed at achieving a high degree of rental and income security.