A typical recent transaction was the acquisition of a portfolio of apartments in two locations outside Berlin. The average cost was around €420 per square meter (US$39 per square foot). The initial gross yield is around 11%. Net after tax cash return to investors (payable monthly, quarterly, or annually), is expected to be 7% per annum and overall after tax return on capital (before achieving any capital gain) is expected to exceed 10% per annum net of all fees and expenses.
Paul Cuthbert-Brown has nearly 25 years experience in financial markets. He co-founded alternative asset manager Creo Capital in 2004. He has spent the past 3 years focused on acquiring German properties and building a network of partners and advisers in the country.
Padraig Seif also joins from Creo. He is a qualified German and English lawyer. Prior to joining Creo, Padraig was a lawyer with Taylor & Co., Norton Rose and Mayer Brown. “We are very pleased Paul and Padraig have joined us at Vulpes. They bring a wealth of experience and expertise in finding, structuring and managing German property for the overseas investor. As a value investor I have often been sceptical about property investment, but German property is an exceptionally attractive proposition at present. The recent acquisition managed by Creo brings our portfolio of German Real Estate to over 350 apartments.” said Stephen Diggle, Founder.
“ Creo Capital is delighted to be joining the Vulpes group. Stephen and I have been friends since we worked together when I first moved to Asia in 1995. I am incredibly excited to be working with him again; and to be joining the Vulpes team. Stephen and I share a view about the deep value available today in German property. We both have committed significant amounts of our own money to this investment idea. Now, we are launching our new German property fund product to outside investors, confident in the strength of our combined platform,” said Paul Cuthbert-Brown, Partner.
Vulpes Investment Management launched on 1st April 2011 and now has 4 funds open to investors: Long Asian Volatility and Arbitrage Fund, Russian Opportunities Fund and Testudo Fund; and now the Creo European Investments Fund. Both the Vulpes Agricultural Fund and the Vulpes Life Sciences Funds will be added to the platform in early 2012.