IVG Institutional Funds has issued a Paris-Fund with an investment volume of around 250 million and a term of 10 years. The first closing took place in early February with four institutional investors. At the same time the first building could be secured for the fund.
The fund is a special real estate fund in accordance with the German Investment Act. The fund, which has a club deal structure, allows a maximum of six investors to participate each with a minimum investment of 15 million.
"The great interest in our new Paris-Fund emphasizes the trend towards regional structured products with a clear focus on preferred inner-city locations," commented Bernhard Berg, Managing Director IVG Institutional Funds.
The new IVG Paris-Fund will invest solely in office and retail properties in central Paris and will benefit from rental growth in this area. The core strategy of the new IVG Paris fund is primarily aimed at achieving a high degree of rental and income security. With the Paris-Fund, IVG Institutional Funds is continuing its successful series of IVG club deal funds.
The first property secured by the fund, a building with a prominent retail profile in an excellent inner-city location with an initial yield of 5.4%, was fully renovated in 2008/2009. The lease has a remaining term of 10 years.
Source: IVG Immobilien