Sal. Oppenheim Real Estate Investment Advisors (SOPREIA) has launched a European real estate fund-of-funds known as the '4IP European Real Estate Fund of Funds'.
Schweizerische National Leben and Basler-Lebens-Versicherungs-Gesellschaft invested a total of approx. €58 million (CHF 100 million) in a first closing. Both investors intend to increase their investment by a further approx. €46 million (CHF 80 million) in total in 2008. Furthermore, the Cologne-based parent company Sal. Oppenheim jr. & Cie. will also be investing a substantial amount in the fund assets. SOPREIA was formed as a new unit of Sal. Oppenheim jr. & Cie.'s Swiss real estate investment banking arm and provides investors with advice on indirect real estate investments, as well as acting as an investment manager.
The fund-of-funds will invest in non-listed European real estate funds, allowing it to set up a broadly diversified portfolio of indirectly held properties. This will give institutional investors (insurance companies, pension funds, high net-worth individuals) from Switzerland, in particular, access to the European real estate market, which remains attractive. The fund will pursue a conservative investment strategy and is aiming for a total return of 6% to 8% over its 12-year term.
Ulrich Kaluscha, Managing Director of SOPREIA and manager of the fund explained, "We developed the strategy and structure of the fund in close cooperation with both investors, creating a product that is tailored to the needs of the Swiss investors. Interested potential investors still have 15 months to opt for an investment in 4IP."
Jan Eckert, Managing Director of Sal. Oppenheim Real Estate said, "As early as one year ago, we picked up on the fact that many institutional investors were looking for a way to make an efficient investment in properties abroad. The specialist expertise of our 15-man real estate corporate finance team guarantees the optimum selection of successful fund managers and funds. We will also be offering further services, such as separate account management, in the future.
Source: Sal. Oppenheim