28 Jun Nox Capital successfully launched residential real estate fund
First transaction with a volume of EUR 20 million shortly after licensing by the CSSF in Luxembourg
BERLIN, 28.06.2021: The real estate specialist NOX CAPITAL has executed the first transaction for its residential real estate fund shortly after licensing by the Luxembourg CSSF. The fund is aimed at institutional investors such as pension funds, insurance companies, foundations, banks, savings banks and family offices.
EUR 20 million transaction volume – 15 properties – 180 units
Only a few weeks after its launch, the portfolio real estate fund of the Nox Capital Group can already report its first transaction amounting to EUR 20 million. This involves 15 properties with around 180 units in three German federal states. The transaction was financed, among others, with the initiators’ own funds and thus not only forms a first seed portfolio, but also represents a strong commitment of the initiators.
Focussing on German residential real estate as a solid capital investment
With NOX CORE RE FUND SICAV SIF, the real estate experts remain true to their core competence – because the conservative investment strategy of the new fund focuses on the German residential real estate market. German residential real estate in selected locations has proven to be an exceptionally solid investment, and not just during the Corona pandemic. Hardly any other type of real estate offers comparably stable cash flows, good value development and attractive long-term growth drivers. In the current market environment, there is growing demand among institutional investors for investments that deliver reliable distributions with an attractive total return. For these investors, solid residential real estate offers exactly the risk-return profile they are looking for.
“Buy-and-Hold” strategy aims for solid cash flows and attractive total return
Thus, as part of its “buy-and-hold” strategy, the Nox Core RE Fund SICAV-SIF pursues a conservative value preservation approach and focuses on investments in mainly residential income properties in locations close to city centres. Commercial units with solid and attractive cash flows round out the portfolio. The regional focus is on large and medium-sized German cities with good infrastructure and above-average economic and population growth in the top 15 metropolitan regions. As part of its conservative investment strategy, the fund targets a long-term annual distribution yield averaging around 3.5-4.0% p.a. with a total return (IRR) averaging around 5.0-7.0% p.a. over 10 years.
EUR 300 million initial portfolio and significant deal pipeline
The real estate fund already has an attractive initial portfolio of over EUR 300 million in residential properties and a significant deal pipeline at its disposal. The aim of the fund is to build up a portfolio that is broadly diversified in terms of regions and properties. As part of the Berlin-based Areal Group, the Nox Capital team can draw on more than 150 employees in five locations and make optimal use of synergy effects in the entire ecosystem of the group.
The initiators are very pleased that the fund has got off to such a good start. “Shortly after licensing, we were able to announce the first transaction. It underpins the strong commitment of the initiators and creates alignment of interest with our investors. We are already working on the next attractive transactions for the fund, so that further capital can be deployed at short notice,” says Christopher P. Koch, Managing Director of Nox Capital Fund Management & Advisory GmbH.
Real estate fund takes sustainability criteria into account
It is important to the real estate specialists that the fund not only meets expectations in terms of the reported return, but also with regard to environmental, social and governance-related aspects. For this reason, Nox Capital pursues a corresponding ESG approach and thus fulfils the wish of many investors to take sustainability criteria into account.
Nox Capital cooperates with renowned partners such as Hauck & Aufhäuser and PWC in the fund management of the Nox Core RE Fund SICAV-SIF. The real estate fund meets the regulatory requirements relevant for KWG and VAG investors and provides all necessary reporting in German or English. The Nox Capital team also receives administrative support from the experienced Swiss financial service provider and co-initiator Finomics AG in Zurich. On the sales side, the team is supported by the experienced experts from 360° Institutional GmbH, artis Institutional Capital Management GmbH, M.M.Warburg & CO and UP2INVEST GmbH.
Berlin-based Nox Capital Group is an internationally active residential real estate specialist advising the Nox Core RE Fund SICAV-SIF. In addition to institutional investment advisory, the company also covers the complete asset management chain and offers its clients excellent market access as well as state-of-the-art portfolio optimization. Nox Capital has already executed more than 2,000 transactions across all asset classes throughout Germany, and its own portfolio exceeds EUR 1.4 billion. More information: www.noxcapital.de
Finomics AG is a boutique financial advisory firm based in Zurich. It specializes in advising on and executing fund structuring. Together with service partners in Luxembourg, the projects are implemented. After implementation, Finomics takes over the function of administrative investment advisor. Finomics offers its clients broad experience in the implementation of an adequate financial product for the chosen investment strategy, taking into account all specifications. Currently, it is involved in three European SICAV-SIF funds with a volume of EUR 850 million. For further information, please visit: www.finomics.ch
About 360° Institutional
Since 2011, 360° Institutional has been advising institutional investors on optimizing their capital investment strategy. The services include the selection of experienced asset managers in the real estate equity and mezzanine segment for multi-investor funds, the management of individual mandates, the dynamic structuring of club deals and portfolio transactions as well as the establishment of ESG investments. Our clients appreciate the trustful cooperation and the long-standing industry expertise, which are focused on high process standards and sustainability. Visit www.360institutional.de for more impressions.
artis Institutional Capital Management GmbH sees itself as a link between product initiators and institutional investors. For product initiators, the universe ranges from support in launching new products, market sounding, market introduction to active placement. Institutional investors are supported in strategic orientation, asset allocation, as a tender platform and as a solution and structure provider of suitable products. In doing so, artis focuses exclusively on illiquid asset classes such as real estate and alternative investments. More information at: www.artis-icm.de
About M.M. Warburg & CO
Founded in 1798, M.M.Warburg & CO is an independent private bank in Germany. As a universal bank, it offers discerning private clients, corporate clients and institutional investors high-quality, individually tailored services in its core business areas of private banking, asset management, capital markets and corporate banking. Within the Warburg Group, nearly EUR 70 billion in assets are under management. Around 950 employees work for the Group at 10 locations in Germany. For further information please visit: www.mmwarburg.com
UP2INVEST is an independent asset manager for alternative investment strategies based in Hamburg. Its clients are institutional and semi-professional investors seeking risk-adjusted investment performance in alternative assets. UP2INVEST combines limited asset access with risk-adjusted strategies and effective investment processes. For more information, visit: www.up2invest.de