Bell Partners Involved With German Firm’s $1 Billion Real Estate Fund

From the press release:

HANSAINVEST Hanseatische Investment-GmbH is creating a new real estate special fund designed to invest in residential real estate in the United States. The fund − known as HANSA US Residential − is geared towards institutional investors who want to be involved with core residential properties in the US. The target fund volume is USD 1 billion, and plans call for equity of some USD 500 million. The distribution yield for investors is forecast at 4.5 per cent p.a. The fund will be traded under the legal form of a German real estate special fund in accordance with the German Capital Investment Code (KAGB).

HANSAINVEST, the Fund Manager, will partner with Bell Partners (Bell) − an apartment investment and management company focused on high-quality multifamily communities throughout the US. At the moment, Bell has over 60,000 units under management. Bell offers an extensive and full service operating platform containing expertise in acquisitions and dispositions, property operations, construction, accounting, risk management, market research and all other related support functions. Since 2002, Bell has completed over USD 10 billion of apartment transactions, including almost USD 1.5 billion of activity in 2015 alone. Bell is also one of the largest apartment renovators in the US.

“Bell Partners is an excellent partner for HANSA US Residential,” said Nicholas Brinckmann, managing director of HANSAINVEST. “Bell provides great market access and the necessary all-round expertise in the multi-family houses segment,” Brinckmann noted, adding that a Bell investment entity will also invest in the fund as a co-investor. “This will enable us to be aligned and have common interests shared by the investors and our local partners,” he said.

“The positive development of the overall economic and demographic data provides a clear argument in the long term for investments in the US residential real estate market. This was what ultimately prompted us to decide to create a US fund,” the managing director of HANSAINVEST said, explaining the strategy further. “What’s more, the legal framework makes it possible to increase rent for residential real estate in the US at much more regular intervals than here in Germany. From the perspective of investors, this is a great benefit,” Brinckmann said.

Geographically, the fund will invest in metropolitan areas with positive demographic and economic fundamentals. The plans call for the properties to be located in strong areas in major cities. The focus will be on residential properties with a volume of between USD 50 million and USD 100 million, including high-rise residential buildings, blocks of flats and apartment complexes with between 150 and 550 units each.

HANSAINVEST pursues a buy-and-sell strategy and intends to hold the properties after their purchase for at least five to seven years. The first properties are scheduled to be purchased this year. Plans do not provide for a limit on the term of the fund. DONNER & REUSCHEL Aktiengesellschaft will serve as custodian.