Allows employees to integrate tax-efficient real estate investments with access to in-house institutional grade commercial property
Announcement represents start of a series of services to be offered by BrickVest Solutions to sponsors in fintech, regtech and proptech sectors
BrickVest, the London-based online real estate investment platform, today announces that it has partnered with BEOS, the German commercial property specialists, to offer an innovative new employee participation fund ('EPF'). The EPF will provide BEOS employees with the opportunity to invest in existing BEOS real estate offerings alongside their institutional investors.
The BrickVest/BEOS EPF is a multi-million co-investment fund, managed by BrickVest and independent from BEOS. BEOS employees invest securely via the BrickVest pan-European platform in high quality institutional real estate deals. The underlying asset, a €300 million higher yielding German real estate portfolio, is being managed by BEOS AG.
BrickVest EPFs align the interests of all parties: sponsors, employees and investors. EPFs allow a real estate sponsor to offer its employees the opportunity to benefit from existing real estate deals, boosting motivation and commitment to the company. For employees, it provides access to in-house real estate deals through a tax efficient structure and a unique opportunity to invest alongside institutional investors in. EPFs democratise real estate investment opportunities and promote a strong alignment of interests.
This announcement represents the start of a series of services to be offered by BrickVest Solutions to sponsors in the fintech, regtech and proptech sectors. BrickVest Solutions will continue to provide services that are in line with BrickVest's original pledges: access, quality, security and liquidity.
BrickVest is FCA approved and in February 2017, was the first real estate online platform to be granted a full-scope AIFM license with an EU-wide passport. BrickVest is permitted to market and manage a wide range of products across all member states and grow beyond the €100 million assets under management threshold. The pan-European distribution platform expects strong demand as a result of this license with best-in-class institutional setup, enhanced secondary market, and its digital know-how with investors and sponsors.
Thomas Schneider, CIO at BrickVest, commented:
"We're delighted to be partnering with BEOS to offer our latest EPF which we believe benefits deal sponsors, investors and employees alike. EPFs are a faster and cheaper solution for deal sponsors who can outsource the whole process to a fully regulated provider.
"BrickVest has a track record in EPFs and we are actively looking to partner with more European commercial property firms to provide employees with access to institutional-class real estate deals. We are continuing to attract institutional sponsors, thousands of investors and family offices that are seeing BrickVest as alternative investment solution. Our innovative platform continues to see soaring levels of demand for accessible real estate investment."
Holger Matheis, Management Board at BEOS, commented:
"Many of our employees wanted to participate in the real estate deals they are managing on a daily basis. In BrickVest, we have found a partner with whom we have been able to implement an innovative solution that makes this possible. Not only can our employees benefit from the returns generated from their investments, but so can the company thanks to the higher employee satisfaction and the increased motivation induced by this scheme. In addition, our institutional investors will know in the future that our employees who take care of their investments will be able to benefit together from its results."
The announcement is another milestone for BrickVest as it cements its place as the go-to solutions platform for European sponsors who are looking to structure, distribute and offer real estate opportunities to European clients, especially those that do not have the AIFM set-up.
The founding team has an extensive experience in real estate, investment services and technology. BrickVest is shifting the model of how to invest in real estate across the globe by combining the best practices of institutional quality investing in real estate with cutting edge technology, first-class governance and regulatory framework that puts the investor first.