Swiss group Empira has announced that it has closed its Residential Invest development fund after meeting with significant investor demand.
The vehicle was strongly oversubscribed, resulting in Empira raising the planned volume from €400 mln initially to around €1.3 bn at present.
Around €600 mln have already been invested in the construction of 1,400 rental apartments, with the fund expected to be fully invested in the coming months.
The Empira Residential Invest fund follows a develop-and-hold strategy and invests in residential developments that are subsequently held in the fund's portfolio. The focus of these investments is on the top seven cities in Germany. The Group has recently applied for classification of the Empira Residential Invest fund as an Article 8 fund in accordance with the EU's Sustainable Finance Disclosure Regulation.
‘With Empira Residential Invest, investors benefit from the opportunity to earn attractive returns due to the lower total investment cost compared with investments in existing properties,’ explained Lahcen Knapp, founder and chairman of the Board of Directors of the Empira Group.
The Empira Group handles all steps in the property development process along with asset management. ‘Generating stable future cash flows is our priority, not a quick exit,’ added Knapp.
Empira has already launched a follow-up product. Empira Residential Invest II (ERI 2), which is planning to reach a volume of €1.5 bn.
