Pan-European real estate investment manager Patrizia has launched its eleventh private investor fund via its subsidiary, Patrizia GrundInvest.
The Patrizia GrundInvest Berlin Landsberger Allee fund owns a mixed-use, fully-let building complex in the German capital, allowing private and semi-professional investors to access the Berlin real estate market.
'Given the persistently low interest rates, real estate assets offer attractive yields of around four percent and adequate inflation protection, especially for long-term investment horizons,' said Andreas Heibrock, managing director of Patrizia GrundInvest.
The building complex with a rentable area of around 35,000 m2 across 10 storeys and one underground level, comprises a hotel, hostel, retail units, office space and a health centre, as well as car parking spaces.
According to Patrizia, the weighted residual term of the rental and lease agreements is just under ten years. Based on the rental income, annual pay-outs before taxes are expected to be around 4%. The subscription fee for the fund is 5%, with a minimum subscription amount of €10,000.
'Berlin benefits from a growing start-up scene and is one of the most popular tourist destinations in Europe,' added Joachim Fritz, managing director of Patrizia GrundInvest.
Meanwhile, Patrizia's GrundInvest Frankfurt Smart Living fund, launched in July, is already about to be closed due to strong investor demand, the investment manager said. The fund enables investors to invest in micro-living concepts in Frankfurt am Main, and more than 80% of the fund has already been placed.
In total, Patrizia's eleven private investor funds have already realised an investment volume of nearly €780 mln.
