Fundamenta buys residential real estate for Germany fund
Fundamenta Group has acquired four residential portfolios for 46 million euros (CHF 52 million) through its German subsidiary. The properties will be contributed to the open-ended real estate fund FG Wohninvest Deutschland.
According to Fundamenta, the properties are located in high-growth B-cities such as Hanover, Dresden, Leipzig, Oldenburg and Neuss as well as in the agglomerations of the A-cities Hamburg, Frankfurt, Cologne and Berlin. The properties are almost fully leased (vacancy rate: 2.9%) and have 349 residential and four commercial units. The gross yield is 5.1 percent.
With these latest acquisitions, the fund has an investment volume of around 170 million euros (CHF 192 million) and comprises a total of 1,334 residential and 21 commercial units in the mid-price segment.
Capital increase planned again
Recently, the fund completed a second capital raising, raising a total of 80 million euros (90.5 million CHF) from existing and new investors. Over the past twelve months, the fund has raised investor capital of 166 million euros (CHF 181 million), Fundamenta reports. A further capital increase of 80 to 100 million euros (91 to 113 million CHF) is planned for the fourth quarter of 2018.
"The purchasing pipeline is full and the next acquisitions are already imminent. It is our goal to carry out the next capital increase of the fund before the end of the year to reach a portfolio volume of 300 million euros," says Christian Paul, CEO of Fundamenta Group Germany. The company is also working on a new product with the "manage-to-core" strategy, which is to be launched in the first half of 2019. (ah)
