FAQs – Frequently Asked Questions
• The fund is geographically highly diversified
• Due to the funds multi-tenant structure, high tenant diversification is achieved
• We perform in depth Due Diligence procedures. Performing Technical, Legal, Commercial,
and Tax Due diligences, with final Reports about possible risks for each transaction.
• Our LTV and LTC ratios are chosen conservatively in order to keep financing risks low
• High cost and quality research
• We provide Best, Worst, and Base Case business model approaches as well as sensitivity
analysis’ taking all significant property risks into consideration
• Germany is the strongest European and the world‘s 4th largest
• German Real Estate is undervalued in international context according to data provided by the
International Monetary Fund (IMF)
• The Mittelstand represents the backbone of high employment rates and the good business
climate in Germany
• 60 % of the German GDP is generated by companies of the Mittelstand
• Real estate values should appreciate further as demand for office space constantly exceeds the
limited supply, especially in the office market
• Brexit will lead to an even higher importance of the German real estate market as it replaces
the UK as the largest EU property market
Retail:
• Management fee p.a. of GAV
• Subscription fee of Equity
• Acquisition & Exit fee of purchase / sales price
• Performance fee over hurdle of 5% IRR w/o catch up
Institutional:
• Management fee p.a. of GAV
• No Subscription fee
• Acquisition & Exit fee 1 % of purchase / sales price
• Performance fee over hurdle of 5% IRR w/o catch up
• Long standing Track Record
• Access to unique investment opportunities
• Fully regulated vehicle
• Highest Standard of Due Diligence
• Most Optimized Tax Structures
• Best Financing Solutions
• Quarterly Property Valuation
• Quarterly Reporting
• Bi-Annual Distribution
• Subscription via ISIN, investment held by your Bank.
• Dividends and interest collected by your bank
Multi-tenant office buildings and health centers (German: Büro- & Ärztehäuser) in a transaction
niche of EUR 10 – 20 million, typically sold by private individuals with limited real estate expertise.
These properties are usually well-maintained and fully operational, however, are undermanaged
due to lack of professional letting and capital expenditure approaches. They therefore provide rent
increase and value appreciation potential by applying professional real estate asset management.
Yes, with a limit of 75% LTV or 50% – 60% LTC
We have acquired an asset in a business center in Dortmund in 12/2016. To date a value uplift of 7.4% has been realized. This is exemplary for the current market conditions in Germany. It underlines that growing demand for real estate in A-Markets meets low supply letting B-Markets such as Dortmund profit. During the purchase process, we were able to let space to a new tenant almost achieving full occupancy, which is representative for current rental space situation in Germany. Due to a semi-off-market deal we were able to get our hands on a property that will benefit the fund, illustrate best practices, and points out the importance of our network.
Based on this expertise, BR-NAS follows a holistic and creative approach to creating sustainable value in real estate across market cycles and environments. We focus on creating value across the entire value chain – sourcing, acquiring, developing/managing successfully exiting investments.
For further investments also see ourTrack Record at http://br-nas.com/portfolio-track-record/
The following values are our guiding principles for successful property investments:
Responsibility: Long-Term thinking is an integral part of BR-NAS and our strategic approach to acquiring and managing real estate.
Transparency: Open communication is the essential element for working with our stakeholders.
Integrity: Excellence in real estate demands responsibility. A holistic and consistent approach to our values is of utmost importance to us.
Further Information on http://br-nas.com/guiding-prin
Target returns are as follows:
• 5% Distribution Yield p.a.
• 8% – 12% IRR
HNWI, Asset Managers, Family offices and small institutional investors
A) Minimum amount of B(€) and D($) shares are €125,000
B) Minimum amount of A(€) and C($) shares are €5,000,000
The BR-NAS fund is a closed-end investment fund. The investment term is 7 years +1 +1.
IFRS International…
Euro. USD share classes are available.
SICAV-RAIF Luxemburg
We do have a fully filled pipeline of investment opportunities and subscription periods are
re-opened before every acquisition. This ensures that there is no surplus cash not invested.
1. Acquisition
• Deal Sourcing
• Deal Analysis
• Deal Underwriting
• Negotiation
• SPA
• Onboarding
• 100 Days Plan
2. Management
• Asset Management
• Property Management
• Project Development
• Monitoring Process & Budget Control
• Service Charge / Reconciliation
• CapEx Supervision
• Letting & Leases
3. Disposition
• Market Sounding
• Research
• Data Room
• Target Groups
• Intermediaries
• Negotiations
Investments into the fund are made by High Net Worth Individuals, Family Offices from Asia, Middle
East and Europe.
For the first case a property located in NRW has been acquired from a private individual, in an off-
market deal, for an agreed sale price of approx. €9,7m and was valued when shifted into the fund at
approx. €12m.
There are no properties that had a bad impact on the fund.
German commercial real estate rents stand at mid-1990s levels. Due to low construction activity
over the past 20 years, the resulting demand overhangs rents, causing prices to increase. The
positive economic and demographic fundamentals underpin this development. Due to very low
volatile markets and a strong EU Economy.
Advantages: Bankable via ISIN, Fully Regulated, Optimized Tax Structure
Disadvantages: secondary market only, Illiquid as direct real estate investment
Multi-tenant office buildings provide for a very high risk diversity over tenant credibility and lease
length. Further tenants from healthcare sector and in multitenant office buildings tend to have a
higher tenant satisfaction index than the average tenant, a better payment history, feel more
attached to the locality, pay higher rents, and have a good to moderate credit standing.
The fund is very suitable for a family office approach, as bankable via ISIN, AIFMD regulated vehicle, with Bi-Annual distribution and quarterly NAV and reporting. An investment into BR-NAS prevents an outflow into traditional real estate. A strong client binding due to a tangible asset class is created.
Two assets have been fully onboarded by the fund with a gross asset value (GAV) of total €33.9
million. The first close was contributed by HNWI and family offices and has been fully drawn and
invested into 5 properties across Germany. However, three closings will be finalized during Q3 and
Q4 of 2017.
BR-NAS has over €850 million assets under management which it manages over its three branches
in Berlin, Frankfurt and Switzerland.
• Our Fund offers access to unique investment opportunities in Europe, provided by a Europewide
network of our Management partners.
• By establishing a diversified fund following the ABBA-Strategy (A location, B market, B location, A
market) a product is created that after being established will be highly attractive to institutional
investors.
• Our tax optimization will offer investors exceptionally preferable returns in the current market
situation.
• Our flat company structure enables us to manage efficiently and get to quick solutions, especially
beneficial for communication between Property-, Asset-, Portfolio- and Investment management.
By actively managing our funds’ assets in house, we create best value and high security results.
• Our expertise is going beyond fund structuring and purchasing real estate and enables us to fully
take control over our real estate. We manage tenants, contracts, insurances and technical
maintenance issues. Perform refurbishment measures, formulate, implement and supervise
capex plans. Ultimately, we generate and lift the value of our properties by actively and
professionally enhancing the property and its underlying cashflows.
Our team currently comprises 26 professionals. The team has executed to date transactions in
excess of EUR 4,5 bn across Germany and Central Europe.
For further detail also see our Track Record at http://br-nas.com/portfolio- track-record/
The AIFMD Manager of the fund is M.S. Management S.A. and the property manager is the BR-NAS
AG Lichtenschtein.
BR-NAS is the Joint venture between NAS Invest and the BlueRock Group.
Within the joint venture, the NAS INVEST Group takes care of all property-related matters including
the sourcing, acquisition, management and successful divestment of the buildings. This is conducted
via the firm‘s German branches in Berlin and Frankfurt, which enable it to efficiently and effectively
manage properties across the country. Bluerock deals with all fund-related matters including the
implementation of tax-efficient investment structures, the flow of funds and distributions to
investors.
Multi-tenant office buildings and health centers (German: Büro- & Ärztehäuser) in a transaction niche of EUR 10 – 20 million, typically sold by private individuals with limited real estate expertise. These properties are usually well-maintained and fully operational, however, are undermanaged due to lack of professional letting and capital expenditure approaches. They therefore provide rent increase and value appreciation potential by applying professional real estate asset management.
The Fund aims at selling the diversified portfolio to an institutional investor as a whole (by way of selling the holding company).
The Fund aims at diversification which will be achieved by a) multi-tenant structures within the buildings, b) investments across various markets in Germany, c) various tenant backgrounds (industries they operate in). b) and c) are achieved at full investment and as such diversification only comes to full effect if the target fund size is reached.
Typically 65-75% from rental income, the remainder from capital gain.
On average, the performance lies at around 10% IRRs.
This is the track record of both our team members and BR-NAS.
At full investment no single property shall represent more than 30% of the Fund.
Typical deal sizes are €10-25m so we estimate the total to be about 20 buildings split across 7-9 German metro areas.
Bluerock and NAS together manage more than EUR 850 million of real estate assets and thus are subject to the European Union‘s Alternative Investment Fund Management Directive (AIFMD). Such AIFMD-oversight is provided by Maitland (MS Management Services SA), a globally operating company established in 1976 and registered with the Commission de Surveillance du Secteur Financier – the Luxembourg financial authority.
Yes, co-investment opportunities are offered to existing shareholders on a priority basis. However, selected investors are being invited to co-invest along the joint venture from time to time.
Within the joint venture, Bluerock deals with all fund-related matters including the implementation of tax-efficient investment structures, the flow of funds and distributions to investors.
Within the joint venture, the NAS INVEST Group takes care of all property-related matters including the sourcing, acquisition, management and successful divestment of the buildings. This is conducted via the firm‘s German branches in Berlin and Frankfurt, which enable it to efficiently and effectively manage properties across the country. For further information please visit www.nas-invest.com.
Investments are being conducted in economically and demographically sound metropolitan areas of Germany. The following have been identified by BR-NAS based on various market research and historic data:
Multi-tenant office buildings and health centers (German: Büro- & Ärztehäuser) in a transaction niche of EUR 10 – 20 million, typically sold by private individuals with limited real estate expertise. These properties are usually well-maintained and fully operational, however, lack a professional letting and capital expenditure approach. They therefore provide rent increase and value appreciation potential by applying professional real estate asset management.
German commercial real estate rents stand at mid 1990s levels. Due to low construction activity over the past 20 years, the resulting demand overhangs rents, causing prices to increase. The positive economic and demographic fundamentals underpin this development.
Target Jump