BrickVest’s HV 2 fund exit generates 2.3x return in 26 months
News , Press release | June 28, 2018
BrickVest, the London-based online AIFM real estate platform, today announces its second successful fund exit with the distribution of Harvest Investments 2 ("HV2"), a BrickVest-managed closed-ended real estate Alternative Investment Fund focusing on Value Add Office investment opportunities in Germany. HV2 generated a net return of 2.3x for its investors over 30 months. HV2 has been developed in partnership with ÆRIUM, the leading pan-European real estate investment manager with Euro 4bn under management.
HV2 made its sole equity investment in a Euro 50m value-add transaction, anchored by a premium office building in Potsdamer Platz, in the heart of Berlin's central business district. The exit was initially expected to generate a net return of 1.6x in two years. However, the outstanding performance of the Berlin office market coupled with ÆRIUM's successful asset management strategy produced net return of 2.3x for the fund investors.
European investors have gained continued exposure to HV2 performance via BrickVest access, its AIFM real estate investment platform. HV2 attracted high net worth investors and family offices from the UK, Germany, France, Switzerland, Scandinavia and Singapore. Following HV2's final closing in April 2016, 27% of initial investors traded their interests on BrickVest Access Secondary market achieving an average net IRR of 64% within 15 months1.
Emmanuel Lumineau (CEO at Brickvest) commented: "This is an outstanding return for investors that exceeded all our expectations. It underlines the quality of the investment opportunities we select for the BrickVest Access platform and the success of our strategy, which is to offer exclusive access to the capital structure of institutional grade real estate investments alongside leading real estate investment managers. This exit also underlines the efficiency of BrickVest's secondary market, which provides commercial real estate investors the liquidity that has been missing."
Franck Ruimy, CEO of ÆRIUM commented:"We are delighted to have generated this superior return for BrickVest investors and look forward to partnering with them on future opportunities. It speaks to the ability of our local teams to identify, acquire and manage outperforming value-add commercial real estate assets across Europe. This return was achieved in the context of a controlled risk profile as the fund invested in a diversified portfolio with a cautious gearing level."
BrickVest Harvest Fund Series
HV2 is the second successful exit of BrickVest's Harvest Investment Fund Series, a group of BrickVest-managed thematic, single strategy Alternative Investment Funds developed in partnership with institutional sponsors. These offer European professional investors cost-efficient and transparent access to a wide range of alpha real estate investment strategies, anchored by institutional assets across the continent and managed by alpha asset managers. Since 2015, Harvest Investments Fund series has launched seven funds and provided exposure to the capital structure of Euro 2bn of real estate deals. Brickvest is committed to the highest standard of investment standards and is a member of AREF, the UK real estate fund association.
BrickVest's previous exit from its Harvest Investments Fund Series was in June 2017 when investors in the BrickVest Fund Harvest 1 LLP ("HV1") achieved a 31% IRR for value add investment strategy, backed by a diversified portfolio of 23 German retail assets. The Strategy was developed by CORESTATE Capital Group, the leading German-based real estate asset manager with Euro 22bn asset under management.
_1 Full details of the trades are available on request to BrickVest Investment team