publity Investments

Investments

For a short while now, publity AG has also been acquiring real estate on its own account through its subsidiary, publity Investor GmbH. The real estate is acquired below market value, values are raised through skilful asset management, then the objects are sold again. In this way, we generate great added value for the company and its investors in the shortest possible time.

Frankfurt, St Martin Tower

ST MARTIN TOWER, Frankfurt

YEAR OF CONSTRUCTION2015
RENTABLE AREA26.133 m²
VACANCY370 m²
WAULT5,4 years
MARKET VALUE146.200.000,00 €

Essen, Quattro

YEAR OF CONSTRUCTION1969/1975;
renovations 1989, 1994
RENTABLE AREA93.595 m²
VACANCY0 m²
WAULT22 years
MARKET VALUE224.500.000,00 €

Frankfurt, Access Tower

YEAR OF CONSTRUCTION1970, complete renovation 2002
RENTABLE AREA20.934 m²
VACANCY900 m²
WAULT9,9 years
MARKET VALUE89.800.000,00 €

Mühlheim, Parsevalstraße

Bürogebäude, Mühlheim

YEAR OF CONSTRUCTION1998
RENTABLE AREA12.578 m²
VACANCY12.578 m²
WAULT0 year
MARKET VALUE17.300.000,00 €

Leipzig, Frischemarkt

YEAR OF CONSTRUCTION1995
RENTABLE AREA17.994 m²
VACANCY3.330 m²
WAULT14,6 years
MARKET VALUE19.500.000,00 €

publity Investments

portfolio

Impressions of publity AG real estate

publity AG manages assets worth more than 4.6bn euros throughout Germany. In addition it acquires various objects for its own account. Here is an insight into the portfolio.

publity Investments

REAL ESTATE SITUATION

German real estate market

Quality real estate in good locations

An investment in the publity Performance Fund provides attractive opportunities which, in view of the development of the German real estate market, can be expected to generate high returns from “the purchase, management and sale of real estate from non-performing financing”.

Revenue generated through the management and sale of real estate

publity Financial Group and its leading employees have many years of experience in the areas of the management and successful utilisation of real estate. This experience is beneficial for investors. The investment companies will only invest in investment objects
where the achievement of projected revenues appears likely and may even be exceeded. Investments are only made in investment objects of stable value in conurbations with a development potential. When making investment decisions, emphasis is placed on the possibility of optimising the tenant structure and achieving a maximum capital gain.

Investments in the purchase of real estate from bank liquidations

In view of the ongoing financial crisis and increasingly stringent equity guidelines, banks will continue to sell real estate as part of their liquidation processes. In addition, financial investment institutions prefer to sell real estate to financially strong business partners in the real estate investment sector quickly and usually without difficulty. publity Financial Group will only make investments in this expert and
niche market. Investments in high-quality real estate at locations with development potential offer sustainable revenue generation. publity will only acquire the investment properties if the real estate experts and independent lawyers commissioned to carry out the due diligence process have determined in their due diligence reports that the “contractually anchored investment criteria” are met or that the “exclusion criteria” are not met. The fund-raising companies will only invest in the acquisition of real estate that can be expected to generate a secure and sustainable return and thus ensure a real material increase in value. An indirect acquisition of real estate is also
possible through the acquisition of shares in a property company holding real estate. “Fund-to-fund transactions” within the publity Financial Group are not permitted. As a result, the fund companies cannot acquire investment objects that have already been the economic property of a company in the publity Financial Group. In addition, any transactions with persons working for publity Financial Group with regard to the acquisition or utilisation of investment objects are also prohibited.

publity Investments

INVESTMENT PROFILE

Investment profile of publity AG

  • Commercial property (preferably office buildings)
  • No operator-run properties
  • single tenant und multi tenant Struktur
  • core, core plus, value add
  • Occupancy rate 0% – 100%
  • Top 10 locations in Germany
  • Commission-free purchase
  • Individual object volume: 5 – 400M €

Advantages of publity AG

  • short-term submission of tenders
  • exclusive and semi-exclusive LOI for DD period of 4 – 6 weeks possible
  • standardised commissioning of due diligence:
    • Legal DD: Simmons & Simmons
    • Technical DD: albrings + müller ag
  • high transaction security through pure equity purchase
  • Proof of equity already on submission of offer
  • high transaction speed (4 – 6 weeks)

For a prompt preliminary examination, please send us a complete overview of the leases along with the brochure and contact our representative by telephone.

Your point of contact

Mrs. Lutska | Phone: +49 (0) 69 715 857 50 | Fax: +49 (0) 69 716 776 40 | Email: a.lutska@publity.de
Mr. Sachs | Phone: +49 (0) 69 713 745 00 | Fax: +49 (0) 69 716 776 40 | Email: f.sachs@publity.de

publity AG | Opernturm, Bockenheimer Landstraße 2 – 4 | 60306 Frankfurt am Main | Germany


publity Investments

MARKET ENVIRONMENT

A market for specialists worth billions

Market with potential: Real estate from bank liquidations

The global financial crisis and its consequences have created a historically unique situation. The real estate business in particular is affected by this. Loose lending prior to the crisis led to a strong demand and gave the banks an enormous portfolio of receivables from cancelled loans and collateralised real estate.

The pressure to sell is extremely high due to this situation and for years has forced banks, state banks and savings banks to increasingly sell a certain portion of their real estate from their credit exposure. For them, it is an opportunity to restructure their lending business and improve their current account balances. Analysts in Germany estimate the market volume of “real estate from bank liquidations” at several hundred billion euros. In the wake of the financial market crisis and stricter capital market regulations, it will continue to increase significantly over time. Major international investors have long recognised the promising opportunities and are harnessing the potential of the German real estate market for high-yield investments.

The currently persistent exceptional situation on the financial market makes it possible to acquire real estate at particularly profitable conditions. publity has exclusive access to this insider and niche market with increased earnings potential. This is not about real estate from foreclosure auctions, but direct acquisition from non-performing real estate financing. publity’s financial products benefit from the experience of publity Financial Group and its management and acquire “German real estate from bank liquidations” – far below the market price – in order
to resell it quickly and at a profit. Together with the rental income generated so far, they generate considerable returns.

However, publity only invests if quality, location and expected returns are appropriate. To secure the investment, investments are made in a broad range of high-quality commercial properties in favourable locations – preferably in the regions of Frankfurt/Main, Düsseldorf, Hamburg, Berlin and Munich. On the basis of a detailed review, employees develop a tangible utilisation strategy for each individual object in order to sustainably increase the value of the real estate. Knowledge of the market and its development is the most important prerequisite for a successful investment. This is why publity invests exclusively in the German real estate market.

publity Investments

Performance Funds

publity Performance Funds

Why invest in publity closed-end funds? Closed-end funds from the publity performance fund portfolio are an interesting alternative to classic investments in the investor’s portfolio, because with just over 10 years of experience publity has developed an unrivalled product.

Overview Real Estate Fund / AIF

LaunchedIssuing phaseStatusIssued capital (euro)
publity Performance Funds Nb. 62013/05/072013/07-2017/06in process33,443,000
publity Performance Funds Nb. 72013/10/102014/02-2015/12in process41,980,000
publity Performance Funds Nb. 82015/03/132016/01-2017/12in process30,312,000
Total105,735,000

publity Performance Fund Nb. 8

With a portfolio of German property acquired through bank liquidations, publity Performance Fonds Nr. 8 GmbH & Co. geschlossene Investment KG received authorisation to sell from BaFin in accordance with the new law as the second closed public investment limited partnership (KG) and invests in a wide range of high-quality commercial properties in good locations, primarily in metropolitan areas with growth potential, such as Frankfurt am Main, Düsseldorf, Hamburg, Berlin and Munich.

The issue phase of the fund company runs until 31 Dezember 2017. The issued capital is to amount to EUR 30,000,000 (including start-up capital without premium).

Facts and figures

Legal structureGmbH & Co. KG
Provider and fund managementpublity Performance GmbH (KVG)
Investmentlimited partner’s share
Formation of fundsMontag, 2015/03/16
Commercial registryCounty court Leipzig, HRA 17305
General partnerpublity Emissionshaus GmbH
Founding limitedHF Treuhand GmbH
Trustee limitedHF Treuhand GmbH
Depositary bankCACEIS Bank Deutschland GmbH
Finance projectsGerman properties on bank recovery
Prospect primary funding30,000,000 Euro
Subscribed primary funding(Still in issue phase)
Equity30 Mio. Euro (60% Leverage)
Premium5 %
Minimum subscription amount10,000 Euro
Sales launchTuesday, 2016/03/01
Start of issue phaseFriday, 2016/01/01
End of issue phaseSunday, 2017/12/31
End of termFriday, 2021/12/31
Forecasted distribution152.37 %
DownloadsSales Prospectus publity Performance Fund Nb. 8

Application for membership Fund Nb. 8

Annex 1, Fund Nb. 8

Annex 2, Fund Nb. 8

Annex 3, Fund Nb. 8

Supplement Nb. 1 Sales Prospectus Fund Nb. 8

Supplement Nb. 2 Sales Prospectus Fund Nb. 8

Supplement Nb. 3 Sales Prospectus Fund Nb. 8

Fund Nb. 8 Key investor information

Annual Report Fund Nb. 8 2015

Annual Report Fund Nb. 8 2016

publity Performance Fund Nb. 7

With a portfolio of German property acquired through bank liquidations, publity Performance Fonds Nr. 7 GmbH & Co. geschlossene Investment KG received authorisation to sell from BaFin in accordance with the new law as the first closed public investment limited partnership (KG) and invests in a wide range of high-quality commercial properties in good locations, primarily in metropolitan areas with growth potential, such as Frankfurt am Main, Düsseldorf, Hamburg, Berlin and Munich.

publity Emissionshaus GmbH launched publity Performance Fonds Nr. 7 GmbH & Co. geschlossene Investment KG in February 2014. The issue phase of the fund company run until 30 June 2014. The issued capital is to amount to EUR 100,000,000 (including start-up capital without premium).

DownloadsAnnual Report 2017/01/01 until 2017/12/31

publity Performance Funds Nb. 6

publity Emissionshaus GmbH launched publity Performance Fonds Nr. 6 GmbH & Co. KG in June 2013. The fund company’s issue phase was extended to 30 June 2014. The issued capital was to amount to EUR 40,000,000 (including start-up capital without premium). The fund company raised limited partnership capital of EUR 33,386,000 (without premium) by 30 June 2014.

Investors may invest in publity Performance Fonds Nr. 6 GmbH & Co. KG starting from a minimum subscription amount of EUR 10,000. The total issue capital of the fund will amount to EUR 40 million. The subscription period will end no later than 30 June 2014. The term of the fund company is limited to 31 December 2018.

Dates and facts

Commercial registryAmtsgericht Leipzig, HRA 17305
General partnerpublity Emissionshaus GmbH
Minimum subscription amount101000 Euro

publity Performance GmbH

The fund management of the current publity Performance Fund has been assumed by publity Performance GmbH. As a capital management company in accordance with the new law of the German Capital Investment Code (KAGB), it must have permission granted by the Federal Financial Supervisory Authority (BaFin).
The personal and professional suitability of both Managing Directors, Frederik Mehlitz and Johannes Kraus, and the composition of the three-person Supervisory Board formed the subject matter of a thorough audit by BaFin. publity Performance GmbH satisfies the new legal requirements, which include the development of portfolio and risk management, the appointment of a custodian, increased requirements for the starting capital, the regular valuation of the fund company’s assets and the net inventory value, as well as the outsourcing of activities, such as compliance and money laundering, by the capital management company.
These also include risk and liquidity management, the preparation and auditing of the annual financial statements and relevant information and transparency duties. In addition to both Managing Directors, a further seven qualified employees of publity Performance GmbH ensure that the increase in security and transparency required by the legislator is fully and sustainably implemented at the current publity Performance Funds.

Risk management

Risks cannot be avoided in the context of financial activity. They are part of any business operations and are necessary requirements for corporate success. Risk management ensures the responsible and controlled handling of assumed risks. By balancing the company’s total risk with opportunities for earnings, risk management should ensure an ideal balance between risks and earnings.

Risk management at publity Performance GmbH identifies, measures and monitors the risks arising from business operations. The measures needed to manage the risks are defined with the goal of recognising early risks that could endanger the company’s existence and implementing countermeasures.

Risk management defines risk coverage potential for publity Performance GmbH as well as the AIFs it manages, and limits the respective risks. In accordance with the provisions of the KAGB, the following types of risk in particular are categorised and monitored:

  • Market risks
  • Counterparty default risk (credit risks)
  • Counterparty risks
  • Liquidity risks
  • Operational risks

Liquidity management

Liquidity management comprises all significant processes that affect the profitability of publity Performance GmbH and the AIFs under its management.

In the context of the liquidity management system, procedures are determined and carried out that enable publity Performance GmbH to cover the liquidity profile of the AIFs with existing liabilities. Liquidity management encompasses investment strategies, payment obligations and divestment deadlines, as well as information in relation to the development of property prices and capital market interest rates, the revenue achievable through the investment properties and general economic development.

Through ongoing monitoring and the use of stress tests, publity Performance GmbH monitors and evaluates the liquidity structure of the AIFs, taking normal and extraordinary business issues into account.

Liquidity management provides the liquidity specified in the investment conditions, taking into account the value of the AIFs and the intended asset investment disinvestment decisions and ensures the necessary solvency of the AIFs.

Custodian

CACEIS Bank Deutschland GmbH fulfils the role of custodian for the investment companies. The implementation of a custodian is legally prescribed within the context of the AIFM implementation and the associated introduction of the German Capital Investment Code.

In this role, CACEIS Bank Deutschland GmbH is responsible for monitoring and checking the ownership situation and the compliance with the associated duty to keep records. Furthermore, CACEIS ensures that the issuing of units in the fund company and the calculation of the value of units in the fund company comply with the regulations of the German Capital Investment Code, as well as the articles of association and the investment conditions of the fund company. Furthermore, CACEIS Bank Deutschland GmbH is responsible for monitoring the company’s cash flow and also bears the responsibility for monitoring the fund company’s overall cash flow.

In addition, the custodian is to use suitable measures to ensure that the generated earnings of the fund company comply with the regulations of the German Capital Investment Code, as well as the articles of association and the investment conditions of the fund company. CACEIS also reviews the completeness and correctness of payments to the investors.

Security

Through the new German Capital Investment Code (KAGB), a legal framework in line with EU law was created that sets new benchmarks and standards in the areas of security and transparency.

The current Performance Fund fulfils all legal requirements to guarantee complete state supervision and audits by the Federal Financial Supervisory Authority (BaFin) and the German Bundesbank. The external management company, publity Performance GmbH, is therefore obliged to inform BaFin of significant business transactions and corporate decisions immediately, and to present regular quarterly and annual reports.

The obligations to report regularly as well as the requirement for state supervision and audits are supplemented by a system of extensive, reciprocal controls that was jointly created by publity Performance GmbH, its Supervisory Board, CACEIS Bank Deutschland GmbH as custodian, the commissioning of external service providers for compliance and defence against money laundering and the commissioning of independent, nationally recognised legal firms and experts with the regular valuation of investment properties.