Innovative property financing- and investment concepts utilising ground rent structures
Unlike other European countries such as the UK and the Netherlands, where ground leases traditionally play a major role in optimising the financing structure of real estate transactions, ground lease properties are rather rare in Germany. However, they have been common in the real estate activities of churches and municipalities and are based on a strong legal framework in Germany.
In light of the current market environment, which is characterized by significantly reduced debt financing capacities for real estate investors and simultaneously an appetite of institutional investors for long-term, inflation-linked and senior secured instruments, Continuum Capital expects a significant growth potential for the ground rent market in Germany. Ground lease concepts are well suited to provide very attractive solutions to address the financing needs of property investors as well as the investment requirements of institutional bond managers.
Continuum Capital was founded with the sole focus on investments in ground rent properties. We are looking to acquire existing ground lease contracts but are also prepared to create new ground rent contracts through sale & lease back type transactions. We are also interested in joining other principal investors in the acquisition of core quality assets as a co-investor by offering a premium on the ground rent tranche, thereby reducing the debt and equity requirements and improving the equity return at the same time.
Continuum Capital allows institutional investors to create an exposure to long-term, inflation-linked and first ranking cash flows. The management team has a long track record in the acquisition, structuring and financing of ground rent properties, which provides a solid basis to further promote and benefit from the growing ground rent market.
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