BlueRock and NAS Invest form “BR-NAS German Mittelstand Properties” joint venture, domiciled in Luxembourg
Investment fund “BR-NAS German Mittelstand Properties RAIF-SICAV” to
focus on multi-tenant office buildings and health centers in Germany’s metro regions
Fund gives qualifying domestic and foreign investors an opportunity to buy into a diversified portfolio of commercial real estate across Germany
The Swiss investment company BlueRock Group has joined forces with real estate investor and asset manager NAS Invest to form the joint venture BR-NAS German Mittelstand Properties. In the same context, the joint venture partners have launched the 13th BlueRock property fund overall. Named “BR-NAS German Mittelstand Properties RAIF-SICAV,” the fund will invest up to 100 million euros in equity in mid-market office schemes and health centers in German metro regions. It will acquire properties whose tenancy is characterised by small and medium-sized enterprises (SME), resulting in a multi-tenant structure to ensure a high degree of diversification and thus of risk optimisation.
The fund series will be open to commitments by European and foreign investors as well as to high-net-worth individuals and family offices. BR-NAS is planning an annual distribution yield of five percent after taxes. The annual total return is calculated as eight to twelve percent over a fund lifetime of seven years.
“The fund focus is essentially on the German SME sector (“The Mittelstand”) as the backbone of the country’s economy. Its portfolio will consist of a diversified tenant mix of various German industrial sectors and cities. This way, we will ensure a stable cash flow and an above-average rate of return in the present market environment while keeping the associated risk to a minimum,” said Ronny Pifko, Founder and Director of the BlueRock Group.
“Both for domestic capital and for cross-border investors, the German real estate market is more than just a safe haven. Especially the real estate inventories of German mid-market companies often lack professional management, and thus offer market players with adequate market access and real estate know-how attractive investment opportunities,” added Nikolai Dëus-von Homeyer, Managing Partner of NAS Invest. In line with the fund strategy of the “BR-NAS German Mittelstand Properties RAIF-SICAV,” the portfolio assets will be continuously developed and optimised in terms of building substance and tenant structure.
Legal counsel in conjunction with the fund launch was provided by MPartners, tax consultancy by Ernst & Young.