IVG has announced that sales are to start for the EuroSelect 14 "The Gherkin" with equity to be placed of £156.3 million (c. €215m). With this fund, investors can invest in a unique property in the City of London. Known as The Gherkin, the building, with the address 30 St. Mary Axe in the financial district of the City of London, was designed by Lord Norman Foster for Swiss Re, the leading global reinsurance company.
The Gherkin in London.
Since 2004, with its striking form, the skyscraper has been a landmark on the London skyline. The property is let to tenants with a good credit standing on a long-term basis. Approximately 50% of this tenant basis is made up by Swiss Re, which is to remain in the building to 2031.
Private investors can participate from an investment amount of £10,000 plus a 5% premium. The forecast half-year capital distribution is 5.5% per year. As a result of the German-British double taxation agreement, income remains virtually tax free up to an equity level of £80,000 per person.
In addition to this single property fund, one further fund-of-funds for private investors is being prepared. "Due to the high demand and positive response for the England fund-of-funds, we have now developed a similar fund for the Asian property market," stated Dr. Klaus-Dieter Schmidt, Managing Director of the IVG Funds division. The dynamic development of the Asian economic area offers interesting investment possibilities. Strong economic growth and a higher level of urbanization result in a strong demand upturn for property. Private investors will be able to participate in these possibilities with a new IVG fund-of-funds. It is planned to start sales by the end of the year.
"A key element of the planned fund-of-funds will to be take advantage of attractive yield opportunities of the regional markets, optimising the opportunity-risk profile by means of a differentiated selection of four to five target funds with different investment strategies," explained Schmidt.