IVG Private Funds, one of the leading providers for closed-end property funds in Germany, has successfully placed the first structured IVG private placement.
The basis for this private placement 'European Headquarters of Hermes Logistics Group' is the property at Essener Bogen 1 in Hamburg, for which a long-term lease is in place with Hermes Logistik Gruppe Deutschland GmbH (Hermes).
In this private placement, IVG has implemented its co-investor approach, retaining a long-term minority interest in the property. The co-investment is intended to strengthen the symmetry of investment interests. In addition, IVG will be responsible for the commercial management of the property and asset management in the coming years. No further details of the transaction will be disclosed.
The transaction has highlighted the growing strategic significance of IVG as an investment platform. It offers customized products for the investment requirements of institutional and private investors as well as the opportunity for capital partnerships by co-investments.
Investments in IVG investment platform products grant investors access to integrated in-house asset management covering the entire real estate investment value chain. Meanwhile, the shared investment allows a transaction with very low incidental expenses.
The new five-story building was developed by IVG and completed in spring 2010. The building comprises around 8,800 m² of office space, 585 m² of storage space, a terrace of 460 m² and 356 parking spaces. The Hermes Logistics Group has been at this location since 1998 and also rents the neighboring building. To optimize space efficiency for the tenant, both buildings have been connected.
As a part of the IVG Funds division, the Private Funds segment focuses on designing, selling and managing property funds for private investors. Private Funds offers private investors on the market for closed-end property funds investments in attractive individual properties and real estate portfolios in Europe with the EuroSelect fund. As at December 31, 2010, IVG Private Funds managed 33 funds and around 60,000 investors.
Source: IVG Immobilien AG