Shore Capital, the independent investment group specializing in equity capital markets, principal finance and alternative asset management, announced the first close of Brandenburg Realty Limited and associated entities which has been established to invest in German residential real estate. Shore Capital has made a commitment of €12.5 mln in Brandenburg Realty.
Brandenburg Realty’s primary focus is to acquire well-located, high quality residential buildings in major German cities, with a focus on Berlin, in order to exploit the sector’s strong growth potential in Europe’s largest economy.
The Fund’s first close has raised €135 mln from institutional investors and family offices, predominantly from the United States, and includes a co-investment commitment of a maximum of €12.5 mln from Puma Brandenburg Limited. Brandenburg Realty anticipates one further close within three months to raise maximum commitments of €250 million.
Brandenburg Realty will be advised by a newly established company, Realty Investment Advisors Limited (the “Investment Advisor”). It will pay to the Investment Advisor an annual fee equal to 1.75% of the net asset value of the vehicle. In addition, the Investment Advisor has appointed Shore Capital International Limited’s Berlin office as local advisor on the same commercial terms as in respect of the services supplied to Puma Brandenburg Limited in relation to its existing German real estate portfolio.
Commenting on the closing, Howard Shore, Executive Chairman, said: “Brandenburg Realty will build on Puma Brandenburg’s successful track record in the German real estate sector developed over the past decade. With our team on the ground in Berlin, we are perfectly placed and have the in-house expertise to assist the new vehicle in executing its strategy to acquire well located, high quality residential buildings in major German cities. We are particularly delighted to be supporting Brandenburg Realty, together with a number of significant US institutional and family office investors.”
Source: Shore Capital