RESIDENTIAL REAL ESTATE INVESTMENT FUND
Investment focus
Sustainable residential real estate (rental apartments) in Riga, Latvia built by the leading real estate developers
ESG
100% invested in sustainable residential buildings with high energy efficiency and compliant with the EU Taxonomy for sustainable finance
Fund units
Fund manager registered with the Bank of Latvia, Fund units registered with the Nasdaq CSD
Product structure
Closed-end Alternative Investment Fund (EU AIFMD) with a 5-year expiry
Minimum investment
20 000 EUR
Target fund return
~9-10% total IRR return*
Stable income and growth strategy
Reason
- Residential real estate has lower volatility than commercial properties and strong historic long-term returns
- Stable income achievable via operational efficiency and rental market growth
- Economic segment new development residential apartments exhibit very strong demand fundamentals
- New development supply in the economic segment is not keeping pace with the growing demand, positive implications for long-term rent and capital value growth
Strategy
- Invest in newly developed quality economic segment residential apartments with high energy efficiency developed by highly reputable real estate developers
- Ensure operational efficiency to maximize income returns, and minimize vacancy risk with a strong consumer brand for the rental market
- All investments aligned with EU Taxonomy for sustainable finance (EU 2020/852) which reduces bank financing costs
STABLE INCOME
CAPITAL GROWTH
INFLATION HEDGE
DIVERSIFICATION
Hanseatic offers investors the potential for
- stable income by generating rental income from properties in its portfolio
- capital growth by investing in properties that appreciate in value over time
- inflation hedge by increasing rental income and property values over time
- diversification by reducing the risk of relying on a single property or tenant
Learn more about investing in Hanseatic funds
KEY TERMS Hanseatic sustainable residential real estate fund I Investment universe Sustainable residential real estate (rental apartments) within Riga, Latvia Target launch Q1 2024 Expiry 5 + 2 years (optional) Product structure Closed-end fund (EU AIFMD) managed by Alternative Investment Fund Manager (AIFP) registered under Bank of Latvia Target product Size (GAV, NAV) GAV > €20m, NAV > €10m Fund advisor Starlex.Investments Total return target* ~9-10% total IRR return Income distribution target* Yearly dividend Minimum investment 20 000 EUR for investors Fees Fund management fee of 1.5% from NAV, Entry fee of 1.5% from investment *Target returns are offered as strategy goals and are not referenced to past performance. There can be no guarantee the target returns will be achieved.