German family-run real estate manager Barton Group has received over €65m in capital commitments for its Barton Wohnen Deutschland II open Spezialfonds.
The fund is expected to make around ten investments worth €250m in total by investing in residential, commercial properties, micro-living or serviced living properties nationwide. With 50% equity capital, it is targeting delivering a 4% internal rate of return to investors, more of whom will be approached as soon as further capital is required, a spokesperson for the company said.
Barton targets exclusively institutional investors, including pension funds and banks that look for stable investment opportunities with a goal above the current low-interest rates. Like its predecessor, the fund will be managed on the Intreal Service-KVG platform.
The new fund is the successor to Barton Pier Wohnen Deutschland, which it closed last year at a volume of €180m. That portfolio includes apartment buildings in Düsseldorf and Frankfurt, along with real estate in Dresden and Leipzig as well as surrounding other major cities, such as Schwarzenbek near Hamburg and in Dormagen and Weilerswist near Cologne.
Dominik Barton, CEO of the Bonn-based group, said: “We have a proven and resilient network with very high market penetration and therefore an attractive deal pipeline.” He says Barton wants to buy properties in locations where “the price trend has not yet reached its peak.”
In addition, the company plans to acquire real estate with potential for rent and appreciation and to manage it to core standards, both existing properties and new buildings to be secured by a forward deal. A maximum of 40% of the total volume is earmarked for alternative forms of living such as micro-apartments with a service that can be booked on request. The Group markets these properties - currently two in Frankfurt and one in Düsseldorf - under the Barton Living brand.
