An innovative concept focussing on releasing value from rental properties in turnaround situations by intensive management makes the new offering "ZBI SCAIAP Opportunity Real Estate Fund One" stand out from most other rental property funds.
Small sized German rental properties (between €2,5 and 10 million) will be bought from owners in financial distress or other difficulties at below-market prices. By applying immediate professional property management and financial instruments, the fund will achieve above average returns within a short period of time.
The fund, laid out for a volume of €500 million, was designed by the fund management specialist SCAIAP GmbH, Frankfurt/Main, and Zentral Boden Immobilien AG (ZBI), Erlangen. SCAIAP-founder Peter Herold characterizes the new concept: "The crucial factor for driving value of our ZBI SCAIAP Opportunity One is the professional management of rental properties. Quite in contrast to other property funds, which rely mostly on big volumes, on interest rate arbitrage, or hope for a general market improvement, we concentrate on smaller sized lots like single houses and small rental blocks and work on detailed measures that bring about direct results in terms of higher occupancy and upward rental contracts." After a few years, properties have reached normal market valuations and can be exited at market conditions. Compared with the low initial investment the fund achieves superior returns.
The concept of the ZBI SCAIAP Fund is based on the experience of four previous funds by ZBI for retail investors. Through its nationwide network of property agents ZBI gets more than 1,000 property offers per month, evaluates every property and acquires on average only four per cent for the fund.
The returns are far above ordinary property funds and comparable to returns of private equity investments. By financial structuring and tax knowhow SCAIAP has made this fund concept attractive also to institutional investors.
Source: Delta Communications