BrickVest has launched its first ever commercial real estate (CRE) bond investment.
The global property investment platform said that the new facility will help fund the acquisition of a prestigious historical building in Luxembourg town centre, tenanted by a government ministry.
The proceeds of the bond will complement bank debt already raised to facilitate the property purchase, BrickVest said. The total investment of €12.7m (£11.4m) is available, with investments into a club deal from a minimum of €1m also being accepted.
The investment offers a two per cent annual fixed rate return, over a hold period of seven years.
It is available via BrickVest Select, BrickVest’s service for institutional investors and ultra-high-net worth individuals offering large commercial real estate deals, which launched in September last year.
Read more: Property investors predict decline in deals
“As the credit quality of the tenant and sustainability of its business is a key driver of default risk in CRE debt, these factors alone make this project an excellent opportunity,” BrickVest said in an email to investors.
“Added to this, the central location within the premium marketplace of Luxembourg, and the experience of the sponsor and its dedicated asset management team, are factors to build confidence.
“Given the uncertain and volatile economic times created by the global pandemic crisis, this CRE bond provides investors with a timely and great opportunity to access a stable AAA-rated cash-flow project, with a return more than two per cent over prevailing ECB interest rates.”
In November 2019 four BrickVest subsidiaries, BrickVest Ltd, BrickVest Technology Ltd, BrickVest Services Ltd and BrickVest Talents Ltd, entered into administration, however the BrickVest website remained live and investors were still able to register on the platform.
At the time, a BrickVest employee told Peer2Peer Finance News that the regulated holding company was still operational and generating revenues, but certain subsidiaries were closed.
Then in February this year BrickVest was bought out of administration by German property investment manager Patrizia.