»Mezzanine-Opportunity US I«

The fund´s object

The König & Cie. US Real Estate Opportunity GmbH & Co. KG is an umbrella fund investing in three US-american, instutional and well reputated real estate mezzanine and opportunity funds. The three target funds have been subscribed with an amount of each USD 10 mio. The partnership agreement allows raising the fund volume by USD 15 mio. Within the scope of the strategy two third of the capital will be invested in mezzanine and one third in apartment development.

Advantages of fund investment

• 3 target funds are already subscribed
• Approx. 2/3 of the investment is Mezzanine-capital
• Excellent security structure through diversification in approx. 100 projects
• Revenues at the first day of investment
• Yield-expectations amounting to approx. 10% p.a. before tax (on an IRR basis)

The concept

The »Mezzanine-Opportunity US I« invests debt- and equity capital in the US-american real estate market. Two target funds invest in real estate related debt instruments only and one is investing in rental apartment properties for development located in Barrier Markets and Rotational Markets. Further more this target fund aims to realise its business mainly on “preferred equity” basis, which is more secure than conventional private equity.

The equity investment in survey

The Market

For many years there has been a deficit in the apartment stock, especially in metropolitan areas and in contrast to the surplus of condos, especially in the southern states. The constant development of rental apartments is based on this excess demand of demographics increasing by approximately two million people every year, driven by positive birth-rate and growing immigration.

During the last two decades commercial real estate financing in the USA has also developed rapidly and created financing forms, which have been adjusted to the market requirements. One form of financing is the so-called mezzanine capital. This subordinated collateralized debt capital is achieving an ever increasing position in the financing market.

The Partners

- Babson Mezzanine Realty Investors, LP (Babson) is launched by Babson Capital Management, LLC.

- Cornerstone Apartment Venture III, LLC (Cornerstone) is launched by Cornerstone Real Estate Advisors, LLC.

These companies are specialised in real estate investments and are subsidiaries of MassMutual Life Insurance Company, rated AAA.

- RREEF Structured Debt Fund, LLC (RREEF) is initiated by RREEF America, LLC, a subsidiary of Deutsche Bank AG (Rating AA-).

Diversification

The target funds Babson and RREEF are investing debt capital in 30 to 50 projects each; the target fund Cornerstone is investing in 6 to 10 apartment developments. Therefore the König & Cie. US Real Estate Opportunity GmbH & Co. KG will particapte on approximately 100 investments, resulting in meaningfull diversification within different asset categories, cities, and states throughout the US.

Taxation

The König & Cie. fund is generating commercial US income. In Germany the revenues are only subject to “provisions concerning progression” (double taxation treaty between Germany and USA).

Disclaimer

The plan calculations of this participation folder are based on the final contracts and agreements, essentially however on prognoses, those for their part are based on experiences and expectations. Different factors can affect the yield situation positively and negatively.

Relevant for a participation is only the full issuing prospectus with company contract, trust contract and the investment declaration. In the issuing prospectus, we point out especially the chapter dealing with possible risks.

You can download our current issuing prospectus in our download centre where you can find all the relevant data as pdf-documents. Of course, we can also send you the issuing prospectus by post.