Aareal Bank Group launches its fourth closed end fund. âAareal German Residential Fundâ will focus on the acquisition and later disposal of residential property assets in economically strong regions in Germany. The fund has a seven year lifetime and a planned investment volume of â¬500 million.
Aareal German Residential Fund is targeting international institutional investors who want to participate in the excellent potential of German residential property in metropolitan regions of Hamburg, DÃ¼sseldorf, Cologne, the Rhine-Main-Neckar region, Stuttgart, Munich and Berlin. The purchase of several portfolios of residential units built between the 1950s and 1980s is planned. During the lifetime of the fund the units will subsequently be sold to tenants who want to become owners, to high net worth individuals or blocs of properties to property traders of residential units, generating excess value.
The fundâs strategic management will be implemented by Aareal Property Services - Amsterdam - a unit of Aareal Asset Management. Operative property management of the portfolio will be ensured by BauGrund, which is a subsidiary of Aareal Bank. BauGrund already manages up to 25,000 residential units in Germany on behalf of third-party clients.
Charles Pridgeon, Head of Aareal Asset Management comments, âInternational institutional investors anticipate the benefits of investing in German residential property.â He sees the reasons, among other things, in the rising importance of private retirement provisions, decreasing supply with increasing numbers of households in economically strong regions. âOur asset managers in their stock selection bring with them a deep understanding of the developments in different regions of the German residential markets,â he continues.
Aareal Bank Groupâs expertise in asset management of German residential property dates back to the early 1920s. Deutsche WohnstÃ¤ttenbank, its ancestor and later named BauBoden already supplied housing financing and services.
Source: Aareal Bank