PROJECT launches real estate development fund
PROJECT Investment AG announced the launch of the equity-based real estate development fund and it comprises a planned fund volume of €40m.
Real estate developments with a focus on housing in the eight metropolitan regions of Berlin, Hamburg, Frankfurt, Nuremberg, Munich, Düsseldorf, Cologne and Vienna form potential investment targets for SP 3. Investors participate in value creation through the development and sale of apartments and business units built by the asset manager PROJECT Immobile. The fund invests in at least five property developments in at least three of the above mentioned metropolitan regions.
An investment is possible from a one-off investment of €200,000 plus a three-year initial charge. The running time is around 8.5 years from placement start – the end of term is scheduled for 31.12.2025. The fund is equipped with the disinvestment concept, which has already been fixed at the public AIF metropolises 16. The early repurchase of limited capital to investors may commence before 31.12.2025, but not within five years after the first investment has been carried out.
The special AIF is launched as a blind pool – like all the alternative investment funds of PROJECT Investment – in which the investment projects are not yet established at the beginning of the placement phase.
The predecessor fund has significantly exceeded the minimum spread ratio within the placement phase and invested in 15 properties so far. SP 3 can also rely on the well-populated object pipeline for ready-for-sale properties with a total sales volume of currently more than €3bn, and will make rapid investments in high-quality property developments in attractive metropolitan areas, “said Alexander Schlichting, managing director of PROJECT.