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

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KEY TERMSHanseatic sustainable residential real estate fund I
Investment universeSustainable residential real estate (rental apartments) within Riga, Latvia
Target launchQ1 2024
Expiry5 + 2 years (optional) 
Product structureClosed-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 advisorStarlex.Investments
Total return target*~9-10% total IRR return
Income distribution target*Yearly dividend
Minimum investment20 000 EUR for investors
FeesFund 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.