26 Oct Durham Capital Investments Announce the Launch of New DCI European Real Estate Development Fund
We are pleased to be able to now offer our clients the opportunity to invest in our new DCI European Real Estate Development Fund (EREDF I), which will focus on direct investing in the European real estate market.
The DCI European Real Estate Development Fund (EREDF I) will concentrate mainly on assets in cities with the most suitable urban demographics, and which are at the forefront of the economic digitalization which is transforming the urban landscape, especially in the European marketplace. We believe that this is a sector which will allow for high yield and low risk core-plus investment opportunities in the mid- to long-term timeframe, within the most attractive global market for real estate investment on a risk-adjusted basis in the present time.
The European real estate market is mostly governed by stable and low interest rates, and the Covid-19 pandemic should trigger a general downturn in the region over the coming years. However, Europe still maintains a socio-economic stability and we believe that there will be some attractive core-plus investment opportunities in real estate, especially with regards to more technological, environmentally-friendly smart buildings, which are at present in high demand and represent the future of urban dwellings and city living, as well as warehouse assets which will grow in importance due to the shift towards e-commerce in retail consumption.
The last few years has seen a general pull-back in bank lending which has resulted in real estate development slowing down, which in turn should now offer more opportunities for capital investments with a view to revenue and value enhancement potential. This fund will seek to generate heightened yields by tapping into previously unexploited revenue potential within value-add investment opportunities through property upgrades, especially with regards to the rental market, which is still showing growth, and in order to accommodate the shift towards e-commerce in the retail industry.
The fund will be aimed primarily at our institutional partners and accredited investors, but will also be made available to any of our individual clients who are able to meet the necessary minimum entry level requirements. The fund will be managed by Gregory Watkins, our newly appointed Director of Global Real Estate, and he will be assisted by a ten-man team of highly experienced specialists based across Europe.
Director of Institutional Investments, Jeff Hadley, said, “We believe that there is a huge gap within the real estate development market in Europe, and this fund is structured in such a way as to capitalize on the investment opportunities which will be presented. The general stability of the interest rates in Europe, together with a constrained environment with regards to bank lending, has created an ideal investment landscape for a well-structured fund managed by specialists. We intend to take advantage of this and offer our clients high yield but low risk value add investment opportunities. Although we are making this available primarily to our institutional and accredited clients, we will also be offering it to individual investors who are able to meet the minimum entry level requirements.”
ABOUT DURHAM CAPITAL INVESTMENTS:
We are a wealth management company which specializes in portfolio management, institutional and private equity investments, and offshore solutions. We believe in responsible investing which is designed to promote long-term economic growth, and in a progressive approach to finding investment opportunities. We take pride in building long-term relationships with our clients and institutional partners, and in helping them to achieve financial success through tailor-made investment strategies.