This summer the German Commerz Grundbesitz Spezialfonsgesellsvhaft GmbH (CGS) will introduce Euro Property 1, the first special fund that will invest in the dynamic markets of Eastern Europe.
Last week the company announced that it would focus on the new EU markets in Prague, Warsaw and Budapest. The fund will invest € 500 to 600 million in at least 15 different real estate properties. The company strives for an external capital share of 45%.
85% will be invested in the new EU countries; the rest in other markets in Eastern Europe.
50% to 70% of the portfolio will be invested in offices; 20% to 40% in retail projects. Other real estate investments will make up for 20% maximum of the total portfolio. In Eastern Europe the company will mostly invest in new commercial properties and logistics. The maximum amount to be invested in a single property is € 50 million.
The fund is aimed at institutional investors with a minimum investment of € 10 million. The fund aims at a return of 6% or more. “Euro Property 1 offers institutional investors the possibility to invest in the prosperous markets of Eastern Europe”, says the managing director Roger Welz.