HV8 focuses on US trophy asset real estate strategies and has been launched in response to increased demand from European investors. This trend was revealed in BrickVest's latest commercial property investment barometer, conducted among 5,000 respondents in Q2 2018 this showed that over a fifth (22%) of investors cited the US as their preferred location for real estate exposure.
The first selected asset is the $134.4m Hilton Hotel located on Chicago's iconic Navy Pier. The opportunity derives from BrickVest's established partnership with ACRON AG, a leading Swiss-based real estate asset manager with a transaction volume of approximately CH1.7 billion.
The hotel, which is currently under construction and due to open in the summer of 2019, boasts 222 rooms with floor-to-ceiling windows offering views of the city, Lake Michigan and the Pier. It will boast America's largest roof top bar and restaurant measuring 30,000 square feet and is the only hotel to be built on the Navy Pier, Chicago's top landmark, which attracts over nine million tourists a year.
HV8 will be distributed through AIFM liquidity platform, BrickVest Access. It marks the second partnership with ACRON. In June 2018 BrickVest held the first closing of Harvest Investment 5 (HV5), a BrickVest-managed real estate AIF with an income-producing strategy developed in partnership with the Swiss sponsor.
Emmanuel Lumineau, CEO at BrickVest , commented: "HV8 offers an exciting investment strategy that closely matches growing investor demand for US investment opportunities. We believe BrickVest is the first platform of its kind to offer European investors access to a US deal and we expect a strong level of take-up due to its quality. It's an excellent opportunity for investors looking to diversify their portfolios, obtain a high level of liquidity and benefit from the growth and strength of the American economy.
"Given our successful track record in working with ACRON, we are delighted to be partnering with their established team once again."
Kai Bender, Managing Director at ACRON , commented: "Following the successful first investment of HV5 in our asset in June this year, we are looking forward to continuing our partnership with BrickVest through this premier investment opportunity. We are continuing to expand our real estate asset management strategy in the US and have a number of new projects in the pipeline."
BrickVest's Harvest Fund Series offer European professional investors cost-efficient and transparent access to real estate deals anchored by institutional assets and managed by alpha asset managers. Since 2015, Harvest Investment Fund series has launched seven funds and provided exposure to the capital structure of €2bn of deals. BrickVest's Harvest Fund Series has so far produced two exits; HV1 achieved a 31% IRR for investors through exposure to a diversified portfolio of 23 German retail assets; HV2, which focused on Value-Add Office investment opportunities in Germany, generated a net return of 2.3x for its investors over 26 months.