Endurance Real Estate Management Companya, 100 % subsidiary of ORCO Property Group, leading investor, developer, asset and fund manager in the Central European real estate and hospitality market, is to open a second sub fund in the ENDURANCE umbrella fund.
This sub fund with an initial equity target of €100 million, dedicated to institutional investors, will be focused on the acquisition, development, management and disposition of middle class and luxury residential properties located across Central Europe, Germany, Croatia and Russia and will start its activities in October 2006. The Fund is structured as a regulated Luxembourg Fonds Commun de Placement, with RBC Dexia as custodian bank.
The Fund is further structured in a tax-efficient way and operated under strict governance rules with a pre-defined rigorous investment process. The Fund is managed by an experienced team of real estate professionals drawn from ORCO's own resources.
As Christoph Manthe, Managing Director of Endurance Real Estate Management Company, states: "In the last few years, economic growth in the Central European region has supported a clear trend in wealth creation, essentially enriching millions of people in the middle and upper middle class. Such creation has been going on in Ireland and Spain for the last 20 years. This implies an important price increase of residential properties, making the real estate vehicle very safe to take advantage of it. Orco has recognized this, and has taken obvious steps to capitalize on the increasing demand for quality residential accommodation and living, with this new Endurance Residential Fund. The Fund is to invest in positive demographic areas like Prague or Warsaw where people keep moving to take advantage of new jobs, lifestyle and infrastructure."
Last year, Orco launched their highly successful first sub fund focused on offices and retail,, targeting 17.5% internal rate of return.. The subscribed equity amounted to €141.6 million. The current Fund portfolio value is €160 million with approx. 50% equity drawn down.
Source: ORCO Property Group