Socially Responsible Investing - Capital Bay Group and UniversalInvestment Launch the "4Society Fund".
Berlin, 28. April 2022
- Investment in German social real estate
- Target volume 300 million euros
- ESG-compliant: Article 8 EU disclosure regulation with social feature
- First property purchases targeted in the first half of 2022
Capital Bay Group, a vertically integrated investment, asset, property and facility manager, launches the "4 SOCIETY FUND" together with Universal Investment as service capital management company.
The 4 SOCIETY FUND is launched as a German open-ended special AIF and is one of the first to invest in German social real estate in which medical, therapeutic, occupational and social rehabilitation and reintegration services are provided in order to achieve participation. The aim is to support social enterprises through responsible investment and to sustainably improve people's quality of life through rehabilitative services. The requirement according to Article 8 of the EU Disclosure Regulation with a social feature has been approved by BaFin. In addition, measures will be taken to reduce the carbon footprint of the fund's properties.
Within two years, the 4 SOCIETY FUND is expected to reach an investment volume of 300 million euros with a distribution yield of 4.0 to 4.5 percent net on average. The fund pursues a defensive core investment strategy in a very high-dividend and less cyclically sensitive market segment.
The first core properties with good tenant quality and long-term leases are already in the pipeline of the 4 SOCIETY FUND. The properties are exclusively social facilities located in Germany, such as therapy facilities for people with dependency or psychosomatic illnesses, reintegration aids, meeting places, day centres or residential facilities for people with special needs, vocational training centres, vocational promotion centres, work projects for the long-term unemployed as well as combined care structures as an integrative mix of different social uses.
Rolf Engel, Executive Chairman of Capital Bay Fund Management, comments: "With real estate investments in social facilities operated by reputable social economy companies with high service quality, we combine profitability with the quality of life of the users. As a company, we want to make an active contribution to our society through social commitment. Through our investments, we support social institutions to develop successfully and at the same time create an interesting investment opportunity with adequate return prospects for our investors."
Axel Vespermann, Managing Director Real Estate at Universal Investment, says: "The 4 SOCIETY FUND is one of the first real estate funds in Germany with a strong focus on social real estate. We are therefore particularly pleased to be part of this innovative investment product for institutional investors. We are firmly convinced that the fund not only fills a gap in the market, but will also be successful in the long term with its focus on the megatrends of our time."