ACRON Launches New Specialized Investment Fund for US Office Properties, Successfully Closes on Real Estate Transaction in San Francisco

The new ACRON specialized investment fund for US office properties is to hold properties in the 15 largest metropolitan statistical areas of the country. Mid-sized properties ranging in value from USD 20 to 80 million per property will allow for active portfolio management and transactions during the life of the fund. An annual distribution yield of 7.0% is forecast.

In accordance with the requirements of the European Alternative Investment Fund Managers Directive (AIFMD), BIL Manage Invest S.A., a subsidiary of Banque Internationale à Luxembourg, will handle portfolio and risk management for the new ACRON specialized investment fund for US office properties. BIL Manage Invest S.A. is authorized as a manager of alternative investment funds by CSSF, Luxembourg's financial services regulator, and is subject to its oversight.

The US economy has recovered more robustly since the 2007 financial crisis than that of the Eurozone. The US market for office properties is also returning to pre-crisis levels. An example here is the appreciation and successful sale of the office property at 10 UN Plaza, San Francisco, which a subsidiary of ACRON AG acquired at the end of 2011 and sold in June 2014. It is prominently located on Market Street and situated across from City Hall and several important court buildings. Two-and-a-half years later, ACRON sold the property for a 37% gain.

According to Klaus Bender, founder and Chairman of ACRON AG, "The sale is proof of the upside potential in the US real estate market. This move was a great success thanks to ACRON's many years of experience in the United States. We also monitored developments very closely during the crisis years. The conclusion drawn must be to focus on improving risk diversification, including in the case of core properties." This realization also shapes the portfolio structure of the new specialized investment fund for US office properties. The majority of properties in various markets are suitable for reducing risk at fund level and offering investors optimal access to the United States, a prime location for business.

The transmission of the marketing application to Germany's Federal Financial Supervisory Authority (BaFin) in October 2014 marked the start of marketing to professional and semi-professional investors. The ACRON specialized investment fund for US office properties was previously on sale in Luxembourg and Switzerland (to qualified investors according to the Federal Act on Collective Investment Schemes only).