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Propfund 1 has raised over €3,million for its Propfund 1 – Income Generating Fund. “Unlike many of our European partners, the German real estate market, in particular Berlin, is attracting a lot of interest from property investors from all over the globe”, says David Healy, Director of Propfund Germany
The majority of recent applications have been from clients investing through their Self Invested Personal pension (SIPP). Propfund has now been approved by multiple SIPP Trustees in the UK and other locations enabling Financial Advisors to include propfund as part of their investment portfolio for SIPP based investments. In recent weeks we have hosted investors from Russia, the UAE, China, Spain and the UK & Ireland. Investment continues to flow into Germany as it has always been considered a safe location, but even more so, now that there is a global shortage of suitable low risk investment opportunities.
David Healy, Director of Propfund 1, speaking at a Pensions Conference in Abu Dhabi.
Strong investor confidence in German real estate was very evident over the last few months as a new price record was set for residential apartments. Portfolios were traded at a volume of approximately €1.45bn during the first quarter of 2011 which is more than twice as much as during both the first quarter of 2010 (around €580mn) and the last quarter of 2010 (about €594mn). The German economy still remains one of the most stable in the world. Consumer confidence is growing, unemployment levels are the lowest for many years as business confidence is at its highest level since the reunification boom of the early 1990’s.
2011 is proving to be a very lucrative, exciting and rewarding time for foreign investors entering into the German real estate market. Prices are low but are steadily increasing and rents are a lot higher compared to other countries in Europe. The Propfund 1 – Income Generating Fund is taking advantage of these market conditions enabling investors to share in a residential portfolio generating rental yields in excess of 9% pa.
