NAI apollo group sets up ‘KiTa' investment fund

Frankfurt am Main, 14.02.2017 – apollo real estate advisor AG, a subsidiary of the NAI apollo group, established apollo real estate investment SICAV-SIF S.C.S. as a regulated investment firm in Luxembourg's financial centre at the end of 2016.

In partnership with an anchor investor from the insurance industry, the investment firm successfully launched its first sub-fund that focuses exclusively on professional and semi-professional investors who primarily maintain their principal residence or place of business in Germany. Marketing the fund to private investors is not permitted.

The sub-fund invests in the "Kindertagesstätte" (KiTa/day care centres for children) asset class in Germany, and will target both existing buildings and new developments. The sub-fund has planned equity of €75 million, and is also leveraged to the same amount.

"The need for childcare places in Germany has been rising steadily for years. State subsidies and the high level of demand ensure that cash flow remains stable in this niche segment," said Martin Karg, who is responsible for buying the centres.

The sub-fund has already acquired its first four properties and is in the process of buying other buildings and project developments.

There are also plans within the group to realise further fund products in future.

Michael Bischoff, sales director at apollo real estate advisor AG: "The political and social framework provides a favourable investment environment for the KiTa asset class. As the same time, the sub-fund offers our investors the opportunity to invest in the future of our society."