Sal. Oppenheim sets up real estate investment management firm

Sal. Oppenheim Real Estate said on Friday that it has launched a new real estate investment management company based in Zurich, 4IP Management. The new firm will capitalise on the experience accumulated by Sal. Oppenheim's consultancy unit 4IP, which has been active in indirect investment over the last two years.

'What started as a project and consultancy team for a few of the leading Swiss institutional real estate investors around two and a half years ago, has grown into a highly specialised niche player. The experienced and highly qualified team in Zurich works closely with the Sal. Oppenheim offices in New York and Hong Kong in creating value added for our investors,' said Jan Eckert, managing director of Sal. Oppenheim Real Estate.

The new unit will focus on the management of indirect real estate investments in unlisted real estate funds and listed real estate companies in Europe, Asia and America. Additionally, Sal. Oppenheim said that its 4IP Management unit has hired portfolio manager Claudia Reich Floyd for its Real Estate Securities division. Reich Floyd previously worked at Citi Property Investors.

4IP will manage Sal. Oppenheim's first fund of funds focused on European indirect, unlisted real estate investments. The fund, which had its final closing at the end of March 2008, is endowed with equity of around CHF 250mln (EUR 154mln) and covers a real estate portfolio of over CHF 6bn with a current investment ratio of 32%.

Sal. Oppenheim also said that it plans to launch its first Asian fund of funds in the fourth quarter of 2008. The fund will be characterised by a value add profile with target returns in the range of 12 to 14%. The company also plans the launch of a Global REIT and a 130/30 Real Estate Securities Fund, it added.