Three months after the start of placement, IVG EuroSelect 21 Munich has broken the 150 million barrier. This means that the property fund launched by IVG Private Funds at the beginning of the year has already placed nearly 75% of the planned fund volume.
In this placement, IVG is also benefiting from the trend that is seeing investors put more equity into property than in the previous year.
"With IVG EuroSelect 21 Munich, we are meeting the criteria that matter to investors," explains Dr Jörn Heidrich, Managing Director of IVG Private Funds.
"The fund invests in an attractively-located property with Allianz as its tenant. We thus offer investors a highly stable and secure investment model that generates continuous rental income", adds Heidrich. In particular, risk-averse investors regard IVG EuroSelect 21 Munich as a sound alternative to bonds and gold.
IVG EuroSelect 21 Munich invests in the biggest German Allianz location in Unterföhring which, with the central administrative building and the operations building, is a core property in the Munich district. The operations building is also home to the group's largest data center worldwide. The two buildings, which have total floor space of around 131,000 m², are let to Allianz a tenant with good credit standing until at least December 31, 2024 under the terms of an indexed rental agreement.
Key data on the fund
The investment volume of the fund is around 330 million. This consists of limited liability capital of 205 million plus a 5% premium, and proportionate debt capital of 115 million (leverage approx. 35%). Interested investors can invest in the fund from a minimum investment of 10,000 plus a 5% premium.
The total reflow of funds is forecast at around 179% before taxes. As a co-investor, IVG is making a long-term equity investment of over 21.1 million in the IVG EuroSelect 21 Munich property companies. The forecast annual payments are 5.5%.
Source: IVG Immobilien AG