IVG EuroSelect 21 Munich: already EUR 100 million equity placed
Bonn, 16.02.2012
At the beginning of January IVG Private Funds launched with the EuroSelect 21 Munich a new closed-end real estate fund. The new fund invests in Allianz’s largest German site in Unterföhring (Munich district), consisting of a central administrative building and an operations building. The latter is also home to the group’s largest data centre worldwide. Both buildings, which have total floor space of around 131,000 m2, are let to Allianz until at least 31 December 2024 under the terms of an indexed rental agreement. In the first 6 weeks already over EUR 100 million of the planned fund volume of about EUR 205 million could be placed. The forecast annual payments are 5.5%.
Germany’s largest insurance company as tenant
“The attractive location, the quality of the building and the financial standing and future prospects of the tenant mean that investors can obtain stable yields,” said Dr Jörn Heidrich (Managing Director of IVG Private Funds). “The sustained interest on the part of the sales department confirms our view that investors are looking for exactly these asset-based investment alternatives.” Allianz Deutschland AG bundles Allianz’s German insurance business (property, health and life insurance). Allianz is the market leader in Germany and one of the world’s largest insurance companies. In 2010, it generated annual revenues of more than EUR 28 billion. Over the past 20 years, Allianz has successively established Unterföhring as its largest site in Germany. It is currently home to around 6,300 employees, with a further 1,500 set to move to the location by 2014. Unterföhring is situated halfway between central Munich and Franz Josef Strauss Airport. It is extremely well connected to the motorway network and can be reached quickly using the S8 commuter train line. The building is located immediately next to Unterföhring station.
Key data on the fund
The investment volume of the fund is around EUR 330 million. This consists of limited liability capital of EUR 205 million plus a 5% premium, and proportionate debt capital of EUR 115 million (leverage approx. 35%). Interested investors can invest in the fund from a minimum investment of EUR 10,000 plus a 5% premium. The total reflow of funds is forecast at around 179% before taxes. As a co-investor, IVG Immobilien AG is making a long-term investment of more than EUR 21 million in the EuroSelect 21 Munich property companies.
IVG Immobilien AG
IVG Immobilien AG is one of the major real estate companies in Europe. The company manages assets worth approx. EUR 22 billion and is located with approx. 590 employees in 19 selected major German and European cities. Via this network of local branches, IVG manages inter alia on balance properties with a market value of EUR 4.1 billion. In northern Germany IVG constructs and operates underground storage caverns for oil and gas. In the fund segment IVG is the leading provider of tailored property funds for institutional investors. In combination with the closed-end funds for private investors, IVG manages funds and mandates amounting to a volume of EUR15.2 billion.
IVG Private Funds GmbH is a hundred per cent subsidiary of IVG Immobilien AG.
Press Contact
Martin Praum
Tel.: +49 (0)228 / 844-300
Fax: +49 (0)228 / 844-372
E-mail: martin.praum@ivg.de
