Orco Group's Endurance Residential sub-fund, a part of the Endurance umbrella fund, is pleased to announce its first acquisition in Germany: a residential portfolio of five buildings in Hamburg. The properties were acquired for €10 million, comprising 105 residential units and 10 retail units. Further acquisitions in Czech Republic and in Germany are planned shortly.
The Endurance Residential sub-fund, with an expected equity of €100 million, is focused on the acquisition, development, management and disposition of middle class and luxury residential properties located across the CEE region and in Germany. The Residential sub-fund is backed up by prime institutional investors who have already committed €57 million of capital in the beginning of the subscription period. Other investors' subscriptions are in progress.
Last year, Orco closed its highly successful Office sub-fund focused on offices and retail, targeting 17.5% internal rate of return. The subscribed equity amounted to €150 million. The Office sub-fund has already closed nine acquisitions for a gross market value of €190 million. Both Residential and Office sub-funds are structured in a tax-efficient way and operated under strict governance rules with a pre-defined rigorous investment process. The Endurance Fund is managed by an experienced team of real estate professionals drawn from ORCO's own resources.