DGAP-Media: Franconofurt AG:
(firmenpresse) - Franconofurt AG / Enterprise
18.03.2010 13:16
Dissemination of a Media Release, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Franconofurt launches residential real estate fund to invest in Germany
Preferred partnership with AENGEVELT for acquisitions
Targeted fund volume up to EUR 300 million
Target IRR 7.8%
Minimum subscription EUR 3 million
Existing seed-portfolio and promising real estate pipeline available
Frankfurt, March 18th 2010. Franconofurt AG, one of the leading German
multi-tenant residential asset owners with special focus on small-ticket
acquisitions has set-up an closedend residential fund. The Luxemburg
domiciled SICAV-SIF Fund will have a preferred partnership with the well
known real estate specialist AENGEVELT with the aim to invest in
multi-tenant residential real estate located in attractive regions with
strong tenant quality.
Target volume of the fund is EUR 300 million. The fund is initiated with a
10 year life period and is expected to produce a cash pay-out yield of
minimum 5% with an IRR of 7.8%. The minimum subscription amount is EUR 3
million and subscription by institutional investors only is planned.
FranconoFund will invest in multi-tenant residential real estate with a
special focus of acquiring small-ticket houses therefore enabling the
investors to get exposure to a portfolio of high quality multi-tenant
houses acquired piece-by-piece at attractive prices. The Fund subsequently
avoids acquiring low quality asset which usually are mixed into larger
portfolios. FranconoFund exclusively invests in urban agglomerations that
offer positive rental developments and growing demographics such as the
Rhine-Main area, Rhine/Neckar-Region and cities such Düsseldorf and
Cologne.
Other target regions are Berlin, Hamburg, Leipzig, Dresden and Nuremburg.
Assets to be acquired will have initial net yields of 6-7% which together
with a lean fund structure will provide attractive yields.
The co-operation with AENGEVELT in terms acquisitions and utilizingselectively the well established acquisition channels of Franconofurt will
enable the fund to be fully invested in a two year time frame.
Franconofurt will co-invest with up to EUR 5 million in the equity of the
fund which is targeting an equity base of EUR 110 million while also
providing a seedportfolio of EUR 15 million with an initial net yield of
above 7%. Furthermore an asset pipeline of EUR 100 million which complies
with the strict acquisition criteria in terms of yield and quality does
exist. German residential real estate due to its price stability and
predictable cash-flows is an ideal asset class to invest in for insurance
companies, pension funds and family offices.
About Franconofurt:
Franconofurt AG is a stock exchange listed investor with focus on German
multi-tenant residential houses. With a total invested volume of EUR 150
million and a total acquisition volumeof more than EUR 350 million over
the last years Franconofurt AG with offices in Frankfurt, Düsseldorf,
Leipzig and Luxemburg is among the leading institutional investors with
special focus on acquisitions of single-piece residential multi tenant
houses.
Contact:
Fundmanager
FranconoAdvisory AGAndreas Lewandowski
Rossmarkt 11
60311 Frankfurt am Main
Phone +49 (69) 920 374-220
E-Mail Lewandowski(at)francono-advisory.de
www.franconofund.de
Franconofurt AG
Metehan Sen, CFO
Rossmarkt 11
60311 Frankfurt am Main
Phone +49 69 920 374 105
www.franconofurt.de
18.03.2010 13:16 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Franconofurt AG
Rossmarkt 11
60311 Frankfurt am Main
Deutschland
Internet: http://www.franconofurt.de
End of News DGAP-Media
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Datum: 18.03.2010 - 08:16 Uhr
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News-ID 1011594
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