The urban population is growing. The need for living space is constantly increasing as a result. This is where the ERSTE IMMOBILIENFONDS strategy comes in. It focuses on demand in the residential sector. The broadly diversified real estate portfolio is supplemented by office and commercial space.
Tangible assets “on our doorstep”
It’s all about the right mixture. The fund’s properties are not concentrated in one single location. In this regard, we clearly focus on Austria. Cities and urban areas take centre stage. Investments are also made in Germany. Here, the fund is currently focusing exclusively on the Hanseatic city of Hamburg - a TOP business location in the north.
The fund is a property fund in accordance with the Austrian Property Fund Act (ImmoInvFG) and an alternative investment fund (AIF) in accordance with the Alternative Investment Fund Manager Act (AIFMG).
How you benefit
You can participate in a property portfolio with a low capital investment – with no need to go through the stock exchange. In contrast to property shares, the price of property funds is not determined by the stock exchange. The calculated value of the fund reflects the value of the acquired properties.
The fund allows you to invest in properties that are considered to be substantial and stable in terms of value and therefore, allows you to take advantage of their profit prospects.
Investing in securities involves risks as well as opportunities.
Good environment for invested real estate funds
- Broadly diversified real estate portfolio
- Focus on residential buildings
- Stable markets in Austria and Germany
Read more about current developments here
Note: Please consider possible risks
Strict selection criteria
The ERSTE IMMOBILIENFONDS is the second mutual real estate fund of ERSTE Immobilien KAG to be classified as an Artical 8 fund (SFDR) as of 15th July 2024. As an Art. 8 funds the ERSTE IMMOBILIENFONDS advertises itself as a “city of short distances” with its ecological and social characteristics among other criterias. The properties are characterized by their central location. The essential facilities for daily basic services such as supermarkets, social infrastructure such as childcare, educational facilities including schools, medical care facilities including doctors surgeries are located in the immediate vicinity. They can be reached without using a car. Among other things this is intendet to achieve a reduction in CO2-intensity. Please note that investing in securities also involves risks besides the opportunities described.
Investing in a broadly diversified real estate portfolio
Broad diversification is of central importance in order to diversify risks and to be able to seize opportunities in different areas - for example, geographically, but also in terms of the intended use of the property. Investments are made in completed and rented properties as well as in projects.
Details on the portfolio of ERSTE IMMOBILIENFONDS can be found here
Everything you need to know
ERSTE IMMOBILIENFONDS
ERSTE IMMOBILIENFONDS
ERSTE IMMOBILIENFONDS
Advantages for investors:
- Investment in tangible assets (land).
- The performance is regardless of stock exchange developments.
- The real estate fund is a solid addition to existing portfolios and provides an opportunity for long-term asset building.
- Investment in a broadly diversified real estate portfolio with a focus on the residential sector in Austria and Germany (Hamburg).
- The investment offers protection from inflation. This is because rents are usually adjusted for inflation.
- Suitable for regular investments with small amounts of money – with the s Fonds Plan.
- The real estate fund is suitable as security coverage for Austrian pension reserves (103.50 euros per share).
- The real estate fund is suitable for the assessment of the investment-related profit allowance.
Risks to be considered:
- Real estate values may fall and have a negative effect on fund performance
- Tenants may vacate, and properties or parts of properties may stay empty.
- This development can result in lower income as well as the suspension of payouts
- Investing in real estate funds may also result in a capital loss.
- The issue and redemption of shares may be suspended in exceptional circumstances.
- Redeeming shares is still possible at the daily calculated value. ImmoKAG may amend the fund regulations so that a minimum holding period of one year and a redemption period of a further year (in addition) apply to redeeming share certificates.
- This could increase the risk of price changes. This is because the share value may, at the time of the irrevocable declaration of redemption, fall below the cost price or below the share value during the period until the share certificates are actually redeemed.
- Amending the fund rules to introduce the minimum holding period and redemption period would not take effect until one year after publication.
- Due to legal requirements, the minimum holding period and the redemption period for all share certificate holders will come into force on 01/01/2027 at the latest.
- The recommended holding period is at least 5 years.
- Investing in real estate or real estate funds should be seen as a long-term investment.
Redemption modalities for real estate funds
Redeeming shares is still possible at the daily calculated value. The amendment to the Austrian Real Estate Investment Fund Act (ImmoInvFG) came into force from 01/01/2022. A minimum holding period (12 months) and a redemption period (12 months) will apply to Austrian real estate funds from 01/01/2027 at the latest.
The aim is to provide greater protection for investors. If a lot of investors want their money returned within a short time, this can lead to a liquidity bottleneck at the fund. With the introduction of deadlines, the fund company can plan liquidity better. If necessary, the fund management has sufficient time to sell properties at market prices to create additional liquidity. This emphasises the character of real estate funds as a long-term investment.
The law will be implemented within a transition period by 01/01/2027 at the latest. Details on the implementation are currently being co-ordinated. As soon as the modalities are clarified, comprehensive information is planned.
The main component of the amendment is the introduction of a 12-month holding period and a 12-month redemption period for Austrian real estate funds. After the minimum holding period has expired, investors may, for the first time, submit an irrevocable declaration of redemption to the depositary. Investors then receive the pay-out after the redemption period has expired. Please be aware that the redemption declaration must be made to your custodian bank and not to ERSTE Immobilien KAG.
We plan to contact you again with all the details at the end of 2025, in good time before all the deadlines actually come into effect. If you have any questions, please contact your bank advisor.
Important legal information
This document is an advertisement. All data is sourced from ERSTE Immobilien Kapitalanlagegesellschaft m.b.H., unless indicated otherwise. Our languages of communication are German and English.
The “Fund Prospectus Information for Investors Pursuant to § 21 AIFMG” (fund prospectus) and the key information document of the ERSTE Immobilien KAG are published on our web site www.ersteimmobilien.at. They are prepared in accordance with the provisions of the Alternative Investment Funds Manager Act (Alternative Investment Funds Manager-Gesetz, AIFMG, Federal Law Gazette No. 135/2013) in connection with the Real Estate Investment Fund Act (Immobilien-Investmentfondsgesetz/ImmoInvFG) Federal Law Gazette BGBI No.80/2003 in the currently amended version.
The fund prospectus and the key information document can be viewed in their latest versions at the web site www.ersteimmobilien.at within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the ERSTE Immobilien KAG (management company) and the domicile of the Erste Group Bank AG (custodian bank). The exact date of the most recent publication of the fund prospectus, the languages in which the document is available, and any additional locations where the documents can be obtained can be viewed on the web site www.ersteimmobilien.at.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation and risk appetite. Past performance is not a reliable indicator of the future performance of a fund. Please note that investments entail risks in addition to the opportunities presented there. Errors and misprints excepted.
ERSTE Immobilien Kapitalanlagegesellschaft, Am Belvedere 1, 1100 Vienna
Imprint / Media owner and publisher: ERSTE Immobilien KAG, Am Belvedere 1, 1100 Vienna service@ersteimmobilien.at / www.ersteimmobilien.at / Place of publication: Vienna