The Investment Strategy
The Fund has created a long-term residential property portfolio in Germany. Due to the nature of the Fund and the characteristics of the German residential market, long term capital growth of the underlying assets of the Fund is ancillary to the generation of rental income, which provides a strong and stable return to investors. Although capital appreciation is expected, this does not form part of the Fund’s projected returns and is not an investment objective of the Fund.
The portfolio is held for the long term with disposals only undertaken where there is a significant strategic benefit to the Fund.
The property strategy is focused on a boutique acquisition approach. This focused approach involves a detailed hands-on examination of each individual property acquisition. Extensive and detailed due diligence is undertaken on the ground, examining factors such as the level of tenant involvement, the dates and length of existing agreements and discussions with the residents directly. This approach aims to ensure that properties in the Fund will have a consistently strong financial performance post acquisition.