Akara launches product for private equity investors
Akara is launching a new investment product, Akara Property Development I KmGK. The target group is qualified investors who want to invest in private equity in real estate.
With the new Akara I KmGK, Akara aims to achieve an investment volume of 50 to 200 million (net assets) with an advised subscription amount of 20 to 60 million CHF; this is to include three to eight projects with volumes between 10 and 40 million. Investments will be made either directly or indirectly in sustainable real estate developments and revitalizations or repositionings in Switzerland, with a focus on residential, office, service and retail uses.
According to Karl Theiler, CEO of Akara Funds, the company aims for a tax-exempt target return of 8% (net IRR) p.a.. The term is five years from the end of the last subscription period and can extend to a maximum of ten years.
The company's first project is the demolition of an existing commercial property in Zurich's Kreis 3 district, followed by the construction of a new residential property to be sold as condominiums or as an investment property. According to Akara, the investment costs amount to 21 million.
Akara I KmGK is open for subscriptions for the first time until December 15, 2020; the minimum tranche is CHF 1 million. The new investment product is aimed at qualified investors domiciled in Switzerland, primarily institutional and private investors, family offices, and 2nd and 3rd pillar institutions. (ah)
