Private Equity
Temporary equity commitment with a high rate of return
Key facts
- Equity capital contribution for real estate development projects (retail property)
- Capital commitment for approx. 12-18 months
- Rate of return between 8 % and 15 % p.a. depending on project structure
Our Approach
Investments are made at the last phase of real estate development projects.
At this stage, developers and contractors oftentimes lack adequate liquidity in order to realise
the planned construction. Up-front costs for planning and site acquisition are usually due over
the first two years of a project and frequently deplete the parties’ funds.
From site acquisition to exit – a visualisation of our investment strategy
We enter the project at the above shown interface between the granting of planning permission
and the beginning of the construction phase (approx. 24 months into the project).
Free and unproductive equity capital is invested into high yielding development opportunities within
a set timeframe of commonly 12 – 18 months. Due to a short investment period and favourable
interest rates on debt capital, this strategy offers an attractive capital rate of return of approximately
25% to more than 30% p.a.
Examples of previously realised investment schemes can be found in Creating Sustainable Values.