Garbe Institutional Capital is launching a new institutional club-deal strategy investing in science- & technology-led real estate: the „Garbe Science and Technology Real Estate Fund 1“ (Garbe STREF #1).
The alternative investment fund (AIF) has a total target investment volume (GAV) of around €400 million. Investment objectives are defined through a tenant-oriented investment approach: all assets in the fund must have a focus on research & development. This includes for example medical technology, bioinformatics, information technology, aerospace and industry 4.0. The fund primarily focuses on core and core+ properties but can also invest in real estate developments. The most important investment criterion is the potential for third party usability of the assets. Garbe Institutional Capital has already received equity commitments from three institutional investors.
Regional diversification will be accomplished through investments in German A- and B-cities, which are characterised by a high density of innovative companies and renowned research institutions. Properties in European core markets, particularly in the UK, the Netherlands and France, are also part of the strategy. The fund only invests in locations where Garbe has a local footprint.
„We are focusing on properties with tenants that benefit from long-term megatrends such as the rise of biotech, digitalisation, decarbonisation and demographic change. We are convinced that we are facing a decade of rapid growth in the realisation of scientific findings into tangible new products and services. Garbe STREF #1 gives our investors access to assets that benefit from these economic developments. We believe the fund provides a very good risk-return profile for our institutional partners,“ says Thomas Kallenbrunnen, Managing Director of Garbe Institutional Capital.
„The research and development sector already contributes strongly to the British economy. At the same time, prices for science- and technology-led real estate haven’t risen as fast as for residential or office properties. By international standards the segment is still in an early to mid-market cycle, and we believe it offers significant growth potential,“ adds Chris Hornung, Managing Director and Country Head of UK at Garbe Institutional Capital.
IntReal International Real Estate KVG acts as the capital management company (KVG) for the vehicle; the depositary is Hauck & Aufhäuser. Linklaters advised Garbe Institutional Capital on the structuring of the fund.