Forbes / Yahoo Finance / Reuters / Seeking Alpha / Boston.com / WallStreet Select – BlueRock Fund Will Invest 40 Million Euros in Acquisition and Renovation of Residential Buildings in Berlin
Investment in the Residential Real Estate market in Berlin through a fully regulated fund
BlueRock Fund, an investment fund managed by a Swiss office, which has invested over 200 million Euros in the last two years, offers, a capital market investment in the residential market in Berlin. Ronny Pifko, a director in BlueRock Fund: “We offer an option to purchase an alternative investment in real estate residential properties in Berlin through the investor’s banker.
BlueRock Fund, a real estate investment fund, domiciled in Gibraltar and fully regulated by the Gibraltar and Luxembourg authorities and AIFMD compliant, today announced a 40 million Euro investment in acquisition of residential buildings in Berlin. The fund is going on a road show these days, and intends to invest at least an additional 100 million Euros in acquisition of residential buildings in Berlin during the coming year. The uniqueness of the fund’s proposal is that for the first time it offers a controlled capital market investment in the residential market in Berlin.
The investments made by BlueRock in the residential field will be performed by purchasing a complete residential Multi Family building and renovate it, if such renovation is required. In the framework of the investment in each building, the possibility of renewal of its common areas are examined. Following the renovations, the apartments in the building will be sold separately per unit. As part of the improvement process the properties are subject to, the properties will undergo parceling, which doesn’t exist in most old buildings in Berlin. As a result of the new parceling process the number of residential units might increase. Once the process is completed and all the renovated apartments are sold, the fund will reinvest the profits once more.
The investment term into Bluerock Fund Cell H (Growth), which focuses on residential investments in Berlin, has an investment term of 5-6 years, and will include at least 2 cycles, in each one of which the buildings are acquired, and their individual apartment sold. The expected average annual yield for the fund’s investors is estimated at 15%.
The buildings, located in central Berlin, will be bought by Bluerock in the range of
2,000 – 5,000 Euros per square meter and include investments in the most prestigious neighborhoods in Berlin. All the buildings and the apartments will undergo an improvement process which very often includes renovations, , and will be sold at a profit of at least 30% over the investment, while in some transactions the expected profit may well be over 50%.
Investment in the fund is very similar to direct holding of the real estate properties, with each investment strategy constituting a completely separate cell independent of the other cells, so that the investor in the fund can examine for himself in what type of properties and startegy the individual investment is in which he wishes to invest, according to its specific characteristics. BlueRock Fund has to date acquired 7 commercial properties in, 6 of them in Germany and 1 in Switzerland, at a cost exceeding 200 million Euros. In the coming year the fund is expected to carry out investments of approximately 150 million Euros in acquisition of residential buildings and office buildings across Germany.
Unlike other investment opportunities, the investment in BlueRock Fund is supervised by the by strictest financial authorities in Europe. The fund is compliant by the AIFMD, a directive by the European Union protecting investors to alternative investments. . The entities reporting to and supervised by AIFMD are required to comply and keep track of the most stringent regulations for the protection and security of the investors’ money. In addition, the fund is supervised and controlled by the Financial Services Commission – FSC, located in Gibraltar, and by the CSSF which is located in Luxembourg.
The investment in BlueRock Fund is carried out in similar fashion to acquisition of a security in the stock market: the customer approaches his banker and requests to acquire a participating unit in a specific cell of the fund, where each cell has a specific and unique symbol, completely separate and independent of any of the others. For example, an investor who participates in a residential cell can find it on Bloomberg under a specific investment code, similar to the other securities. The minimal investment offered by the fund is 100’000 EUR, and it is open to investors worldwide.
Ronny Pifko, a director in BlueRock Fund: “We offer the option to participate in the excellent residential Real Estate Market of Berlin in a simple an dmost secure way. These investments are in the most attractive neighborhoods selected by local experts with 30 years of experience in real estate investments in Berlin. We bring forth a unique investment product to the I investor, complete with full transparency, a local partner, the strictest regulation and Swiss professionalism.
About BlueRock Fund
The BlueRock Fund, a real estate investment fund, was established two and a half years ago and has to date carried out 7 successful investments in office buildings at a cost of over 200 million Euros. The fund has succeeded in yielding double-digit earnings for its investors. The fund’s managers have vast and rich experience in carrying out real estate investments in Europe. The buildings in which the fund invests are leased to leading European companies, such as the communication corporation Deutsche Telekom. The fund was established with the purpose of allowing investors worldwide to diversify their investments in capital markets, and to expand into new areas, in order to create better distribution and diversification in their investment portfolios, while being supervised by the most stringent financial authorities in the world. The fund’s investments are executed in a responsible and meticulous manner by professional real estate experts in Europe.