11 April 2022

Green Impact fund series: BaFin approves Wealthcore's second Article 9 fund

Green Impact fund series: BaFin approves Wealthcore's second Article 9 fund

  • "Wealthcore Green Impact Fund": Investment in core / core+ new residential construction and core refurbished stock in Germany's top 8 cities and Vienna
  • Approx. 500 million euros target volume, 300 million euros equity, 10 million euros minimum investment amount
  • Target group: VAG and Solvency investors such as insurance companies, pension funds and pension schemes
  • Planned fund term: Evergreen
  • Target distribution CoC: 3-3.5 percent p.a., target IRR: 5-5.5 percent p.a.

(Munich, 12 April 2022) With the "Wealthcore Green Impact Fund", the Munich-based investment manager Wealthcore is already launching its second Article 9 residential real estate fund. "The Wealthcore Green Impact Fund makes a significant contribution to achieving the Paris 2050 climate targets through the development of sustainable residential projects in Germany and Vienna. We reduce CO2 emissions sustainably and permanently by additionally reducing primary energy demand by at least 20 percent below the EU taxonomy target," explains Ralph Andermann, Managing Director of Wealthcore Investment Management, about the investment strategy. The fund has just been approved for distribution by BaFin. The fund will be launched with seed investors in April.

In order to combine ecological and economic interests, the "Wealthcore Green Impact Fund" focuses on the long term and sustainable returns. To this end, housing projects are identified, evaluated and purchased using the Wealthcore ESG Investment Score. The scoring ensures the environmental and economic effectiveness of the selected measures. The development of the Investment Score was supported by the long-standing ESG project development expertise within the United Benefits Holding group of companies. "With our Green Impact funds, we primarily counter transitory risks, i.e. risks arising from the decarbonisation of the building sector. That is why we are already focusing exclusively on long-term sustainable properties," Andermann states.

The portfolio is geographically allocated in the high-growth metropolitan regions - Top 7 plus Leipzig - of Germany and in Austria's federal capital Vienna. The goal is to build a diversified residential real estate portfolio with the highest ecological and energy-efficient standards. The focus is on climate-friendly energy supplies and building materials, high recycling rates and consumption efficiency through digitalisation.

"The second fund of the Wealthcore Green Impact series thus also follows the clear sustainability strategy of the Viennese parent company United Benefits Holding," explains Michael Klement, CEO of the holding company. The acquisition pipeline includes one new building each in Rhine-Main and Leipzig as well as in Vienna.
The open-ended special AIF is aimed at institutional investors such as insurance companies, pension funds and pension schemes. As with the first Article 9 fund, IntReal Kapitalverwaltungs GmbH acts as the capital management company, while Hauck & Aufhäuser AG acts as the depositary.