Numisma Group Ltd, a joint venture (JV) between the Guernsey based Pervaiz Naviede Family Trust (PNFT) and the Stenham Group, has secured a €500 million funding line from Anglo Irish Bank Corporation Plc to build a property portfolio with individual lot sizes in excess of €20 million. The Joint Venture has already invested over €150 million in retail and office property in Germany and Switzerland since securing the funding three months ago.
This first phase of investment sees Numisma create a 1 million sq ft portfolio including several retail parks, shopping centres and neighbourhood centres, most notably the 215,240 sq ft Eiderpark in Rensburg (see attachment for full list and description of acquisitions to date).
The Joint Venture will continue on its acquisition trail focusing on building a diverse portfolio in three principal sectors retail, distribution warehouses and hotels.
Numisma is being advised exclusively by property advisors, McCafferty Asset Management who are processing these transactions, including due diligence and completion of all the deals.
Says Ken Hutchings, Managing Director of McCafferty: We believe the German and Swiss commercial property markets provide the best returns in both the medium and long term. The low interest rates in the euro zone coupled with relatively high yields means we are looking for a yield target for our fund of 7% and above, before the deduction of non-recoverable expenses.
The fact that we can also use the German Team at major law firm Cobbetts to do the legals has made our life a lot easier. We started off using legal advisers in Germany, before realising that the expertise was available right on our doorstep.
Comments Christian Bodtke, Head of German acquisitions: In only three months we have already built up a property portfolio worth euro 150 million. Working with Numisma we are on course to investing the remaining money to achieve our aim of building a €500 million fund within the German and Swiss markets by the end of 2006.
We have been able to build this portfolio in such a short space of time because, unlike our competitors, we have the option to be a cash purchaser of properties enabling us to buy them quickly once the decision has been made to proceed. We are already in the process of appointing Dirk Voelkel of Voelkel and Company as the property manager in Germany.
David Rowlinson, Anglo-Irish bank says: We have worked with the PNFT for a number of years and there was a compelling business argument for arranging this current facility for the Numisma fund. Our priority was to ensure it had the flexibility and firepower to expand and take full advantage of the growth opportunities available in Germany and Switzerland.
Mark Green, Head of Cobbetts German Team and German Honorary Consul says: Buying commercial real estate in Germany is completely different to the UK process, so part of our role was to assist Numisma and McCafferty in getting up to speed quickly with local legal requirements, cultural differences and market expectations. With four dual qualified lawyers at Cobbetts working on the German assignments, we have been in a unique position to give the necessary key support to the aggressive client strategy.
Source: Numisma Group Ltd.
