German property group Patrizia Immobilien has unveiled plans to offer funds for private investors from 2015 onwards.
German property group Patrizia Immobilien has unveiled plans to offer funds for private investors from 2015 onwards.
The company said it is launching the new Patrizia GrundInvest unit to launch closed-ended real estate investment funds from 2015.
'The introduction of the German Investment Code (KAGB) means this is the right time to expand into offering funds for private investors,' commented Wolfgang Egger, CEO of Patrizia Immobilien. 'We have looked at entering the private investment segment for some time but we did not want to become involved in an unregulated market.'
The company has hired experts Andreas Heibrock and Joachim Fritz from Real I.S to manage the development of the new Patrizia GrundInvest unit. Combined they have over 20 years of real estate experience and together, they have already placed equity worth over €5 bn with private investors.
Patrizia GrundInvest will cover all types of real estate use, with investors being able to participate with a minimum investment of €15,000. The annual yield is expected to be between 4 and 6%.
The start of activities is subject to the successful conclusion of the approval procedure with the German Federal Financial Supervisory Authority (BaFin), as the KAGB states that closed-ended investment funds may only be placed on the market with BaFin approval.