HANSAINVEST Hanseatische Investment-GmbH, a Hamburg, Germany–based capital management and investment company, has created a new real estate investment fund specifically for residential real estate investments in the United States. The fund, HANSA US Residential, is designed to attract German institutional investors interested in high-value core-market residential properties in the U.S.
HANSA US Residential is legally structured as a Immobilien-Spezial AIF, or a real estate special fund, under the German Capital Investment code (KAGB). The fund’s target volume is US$ 1 billion, with a call for $500 million in equity, and the distribution yield for the fund’s investors is forecast at 4.5% per year. There is no stated limit on the term of the fund.
In order to navigate its new market and build a strong portfolio, HANSA US Residential will enter the U.S. in partnership with Bell Partners, a Greensboro, N.C.–based multifamily investor and manager. HANSAINVEST chose Bell Partners as a market collaborator based on the latter firm's industry track record, common interest in high-quality assets, and “their detailed focus and approach on real estate, especially residential properties,” according to Nicholas Brinckmann, managing director of HANSAINVEST.
“HANSAINVEST will benefit from Bell Partners’ expertise in finding the assets that meet our acquisition targets and deliver attractive returns,” Brinckmann says. “We can extend our exposure to the U.S. residential sector and take a further step in diversifying our portfolio in terms of sectors and regions. In addition, we will be partnering with a company that we consider to be one of the strongest multifamily experts in the U.S. They have a deep knowledge of the market, an extensive track record of top performance over many cycles, and a fully integrated investment management platform.”
Bell Partners conducted over $1.5 billion in apartment transaction activity in 2015 and has done a total of $10 billion in transactions since 2002. It currently has more than 60,000 units under management across the country and 20,000 more under renovation.
HANSAINVEST holds assets valued at over 23 billion Euro ($25.7 billion) in more than 145 public funds and more than 60 special funds, and its Real Assets division manages 5.3 billion Euro ($5.9 billion) in real estate across 18 countries.
Starting this year, HANSA US Residential will focus its investment efforts on properties in large metropolitan areas with a volume between $50 million and $100 million in 150 to 550 residential units. HANSAINVEST plans to hold its investments for five to seven years before reselling them.