Westplan Investors introduces her second real estate fund this year and now totals fourteen funds. The fund, Hillside Vista Apartments CV, invests in the construction, management and sale of a complex with 112-apartments complex in Atlanta, Georgia.
Subscribing to the fund has started and construction is expected to start in July 2002. The project comprises the development and management of 212 rental apartments in Cobb County, north-west of AtlantaÂ's city center.
Total investment amounts to approximately USD 15.5 million, of which Dutch investors are expected to contribute USD 3.3 million through participations of USD 30,000 each.
Expected yield of Hillside Vista Apartments is 22% per annum. According to Managing Director drs. P.J.H. van Harderwijk this is a realistic forecast: Â'The low interest rates makes it very attractive to invest in new real estate. Moreover, as the economy improves you have an added advantage when the apartments will be delivered in 12 monthÂ's timeÂ'.
Westplan develops the complex in combination with an experienced project developer from Atlanta, with whom Westplan has worked previously on three occasions.
Although the rental market has experienced difficult times during last year, occupancy rates of 91% in Atlanta are still very healthy. As the economy will recover during 2002 and 2003, renting out of Hillside Vista looks promising. Rental accommodation is a sound investment, as shown by WestplanÂ's fund initiated last year, wehereby a yield of 30% has been realized.
The interest to invest in real estate is large. Total subscriptions surpasses the availible participations. Van Hardewijk: Â'Due to uncertain times on the financial markets, investors return to stable investments and real estate is high on their listÂ'.