Product Portfolio|Real estate funds
    Real estate is traditionally considered to be a relatively safe investment. In addition to equities and bonds, direct and indirect real estate investments are therefore a key element in every long-term capital investment portfolio. Real estate investments satisfy the criteria of risk diversification in investors portfolios because their value develops relatively independently of other investment classes such as equities or bonds.

    Through an investment in a closed-end real estate fund investors acquire an interest in a fund company which buys one or several properties or invests in companies that own properties. Investors benefit from the economic performance of the properties as limited partners or trustors of the fund company, which has the legal structure of a limited partnership (GmbH & Co. KG).
     

    What are the most important criteria?

    		  
      Experience of the partners on whose know-how and performance the fund concept is based
      Positive enviroment of the property locations
      Medium to long-term rental agreements with tenants of high credit standing
      High-quality properties at reasonable purchase prices
      Stable and favourable tax and legal situation
      Conservative calculation of the fund
    The selection of the right properties is decisive for the success of the investment. This is why all properties are selected by experts with professional property know-how. The properties to be bought by the fund company are generally defined from the start. The investment and financing plan is also known. The fund is closed once the equity capital required for the investment project has been syndicated.

    The return of the fund investments primarily result from regular dividends. The dividend amount depends on the rental income generated by the fund company from the properties. Current costs, interest and redemption payments as well as the setup up of reserves (for maintenance, rent losses, etc.) are deducted from the rental income and the rest is distributed to the investors.

    Moreover, investors benefit from the expected gain on sale of the properties. Depending on the fund concept and market situation, a sale is usually targeted after five to ten years. In addition, tax benefits due to tax-free allowance in the countries where poperty is domiciled make such funds even more attractive.