WE LOVE BUYING GERMAN REAL ESTATE
PRIVATE EQUITY
Private equity is one of those Anglo-Saxon terms that have also become established in the German-speaking world of finance and real estate.
“Private Equity” in this context refers to real estate purchases where private or institutional investors provide capital, which is then often supplemented by debt capital, i.e. mortgage loans, thus increasing the purchase volume.
We use this type of Private Equity through setting up investment companies, which today is sometimes referred to as “Club Deals”.
In these deals, the MAGAN group of companies always provides a portion of the equity to be used and takes over property selection and asset management for the holding companies, while the partners provide a larger portion of the equity.
Together with various investors, MAGAN Group has already purchased more than 300 properties in this way in Berlin, Leipzig, Dresden and other cities in the new German federal states.
These are distributed among various holding companies, some of which are still being managed on an ongoing basis and some of which have already been sold off.