Super Global launches first fund
Funds also offer significant advantages for the reputation of their initiators – including towards investors – as they are considerably more regulated and more transparent than investment companies. “And funds are more easily scalable compared to what is usually possible with special purpose vehicles, for example”, Knoblach highlights. There are no disadvantages either since funds are able to act as borrowers and investors in the same way as companies.
Quite the contrary: advantages for investors are even greater. “The entire investment process is much more transparent and simpler, as these are securities that can be deposited: Like all securities, they may be booked and managed in investors’ investment accounts”, Knoblach says. A simple order to the bank will then be all that is needed to invest in a real property project, for example. “Overall, the administrative effort will be reduced by some 50 per cent, which also entails significant cost advantages”, Knoblach explains.
In view of the market environment, the trend towards funds instead of more complex SPVs as vehicles for real property investments is expected to accelerate even further. “For a long time, the real property market used to be purely a seller’s market”, says Knoblach. “This is changing now. Buyers have a greater say not only as relates to pricing but also in the design and terms of the investment.” Funds are considerably better suited for this approach.