BR-NAS adds assets in Munich and Hamburg to Mittelstand fund

BR-NAS, a Luxembourg-based joint venture of Berlin-headquartered NAS Invest and Swiss investment company BlueRock Group, has added a commercial property each in Munich and Hamburg for its investment fund “BR-NAS German Mittelstand Properties RAIF-SICAV.” The transaction brings the fund portfolio up to four assets with an aggregate value of about €60m. The tenants occupying the properties are mainly German mid-market companies.

“The properties perfectly match the fund’s acquisition profile, which permits a maximum in diversification in combination with an attractive distribution yield,” said Nikolai Dëus-von Homeyer, Managing Partner of NAS Invest. The fund focuses on commercial real estate occupied by medium-sized enterprises in a broadly diversified tenant mix, offering both a sound risk/reward profile and a stable cash flow. The risk profile covers the segments “core+” and “value-add.”

In Munich, BR-NAS purchased a fully occupied office scheme of more than 8,200 m² at Munich Airport that was built in 2002. The location counts among the most attractive office locations of the Munich metro region and comes with convenient public transport links to the town centre. The office and medical centre bought in Hamburg is located in the high-street pitch of the city’s Harburg district and has more than 3,200 m² of lettable area.

The “BR-NAS German Mittelstand Properties SLP-SICAV” fund provides qualified investors from inside and outside Germany access to a diversified portfolio in office real estate across Germany and has a target volume of €250m to €400m. BR-NAS said earlier this year that it was planning an annual distribution of 5% after taxes, with the annual total return calculated as 8% to 12% over a fund lifetime of seven years.

Dëus-von Homeyer described the rationale behind the fund at the time of launch thus: "The real estate inventories of German mid-market companies in particular often lack professional management, and thus offer market players with adequate market access and real estate know-how attractive investment opportunities.”