LRI Group partnered with one of the largest German insurance groups in launching a real estate fund with a committed capital of €600m. The fund targets exclusively professional investors and focusses on a diverse portfolio in the area core/core plus real estate in Europe ex Germany.
As Alternative Investment Fund Manager (AIFM), LRI Invest S.A. provides central administration and portfolio management as well as the specific regulatory reporting for German investors. LRI Depositary S.A., the in-house depositary for alternative investments, functions as a register and transfer agent. The role of the investment adviser is fulfilled by a large international real estate investment manager.
LRI launched a specialised investment fund (SIF) tailored to the specific needs of German institutional investors such as pension funds and insurance companies. SIFs in Luxembourg are highly efficient not least due to their rapid implementation. In addition, due to its regulatory environment the Luxembourg SIF is more flexible than its German counterpart as it can be tailored to the specific needs of the initiator and especially the investors, also product-related requirements and restrictions are less strict than in Germany.
Michael Sanders, managing director of LRI Invest S.A. says: “We are very happy about the confidence the investor has in us. LRI Group positions itself once more as an established partner for regulated German investors such as insurance companies and pension funds who want to invest in alternative investments via Luxembourg. The legal and regulatory framework in Luxembourg provides not only German but also international investors various possibilities in the structuring of investment mandates.”
Overall, LRI Group manages over €3bn in alternative investments for a global investor group, of which around EUR 1 billion are in real estate. In 2016 the transaction volume in real estate totalled more than EUR 900 million.