The IBUS Company announces the successful structuring and placement of its German Institutional Residential Property Fund (DIW or the Fund). The investment policy of the Fund is aimed at using the opportunities that are currently apparent in the German residential property market.
The first investment of the Fund, being a residential portfolio in Salzgitter, Braunschweig and Cologne of 1354 apartments, has recently been closed and has been funded by Ahold Pensionfund and the European residential pool of Cordares Real Estate.
The Fund will focus on a combination of core and value added investments in the German residential market. The strategy is aimed at long-term continuation of the leasing operations for the apartments, with a focus on improvement of the quality of the rental income stream. In extraordinary cases, selling off individual apartments to tenants will be considered.
DIW is a Dutch BV with a defined lifetime and initial equity of 22.5 million. IBUS has the possibility to increase the equity of the Fund to a maximum of 100m over the next 3 years as a result of new German residential investments. The placement period of the Fund runs parallel to the 3 year investment period of the Fund.