Diversified real estate private debt portfolio accessible via digital investment platform with 6.5 - 8% target yield on junior and senior loans spread nationwide
LINUS Digital Finance, a leading Berlin-based financial technology company, is expanding its investment offering with the "LINUS Managed Portfolio" fund of funds. Through the newly launched alternative investment fund (special AIF), investors can digitally participate in a curated portfolio of ten professional real estate financings and benefit from LINUS' proprietary network of renowned real estate developers and unique co-investment model.
Since its founding, LINUS has successfully financed over 40 real estate projects with more than half a billion euros together with co-investors. Professional and semi-professional investors can participate via the digital investment platform of the Berlin fintech. Through the new fund, investors receive a preferred allocation to all real estate financing offered via the platform and are expected to generate a target return (IRR) of 6.5 to 8 percent with a maximum term until the end of 2024. In addition to the project level, the fund also diversifies regionally across various German metropolitan regions as well as across types of use (residential, office, mixed use) and loan tranches (junior and senior).
"Real estate private debt offers attractive investment opportunities, especially in the current low interest rate environment, but requires good market access and in-depth expertise in project selection. With our 'Managed Portfolio', we are breaking down traditional barriers to entry in order to open up access to this exciting asset class to a broader group of investors," explains David Neuhoff, founder and CEO of LINUS Digital Finance AG.
The new fund will benefit from a seed portfolio consisting of four individual financings from the first day of the investment phase from 1 April 2021, thus ensuring a direct capital drawdown and optimisation of investor returns. These are two senior loans with a remaining term of 5-36 months for two existing properties in Hamburg and Frankfurt, as well as two new buildings in Berlin. Over the course of 2021, six further investments will be added to the managed portfolio, subject to predefined investment criteria.
About LINUS Digital Finance:
LINUS Digital Finance finances real estate projects with debt and mezzanine capital via a debt fund that it manages and enables semi-professional, professional and institutional investors to participate in these investments via a digital platform. The term of the loans is usually between 12 and 48 months. A subsidiary of LINUS Digital Finance AG is supervised by BaFin as a capital management company (KVG). The funds and investment companies managed by LINUS, together with co-investors, have invested a total of around €600 million in capital in real estate projects since the company was founded in 2016, financing a project volume of over €1.5 billion.
Phone: +49 (0) 30 726276 1544