Greenman funds

S

Staple

Registered User
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Someone mentioned these German based funds to me as being a good fund option for having their pension invested in. I am not familiar with them and wonder if anybody has come across them or has any views ? As far as I am aware they are operated through Friends First.
 
Investing in supermarkets, garages etc in Germany. Can be illiquid.

Not something I recommend to my clients.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Hi Staple,
I will offer a different perspective from Steven on this. We looked at this option and spent quite a bit of time looking at it. We met the company twice, did a field trip to see the operation in Berlin and had several calls with the company as part of our due diligence process. On balance we are positively disposed but in particular Greenman Open which has a liquidity feature every quarter after an initial 12 month minimum holding period.
Certainly this like any investment option is not risk free. However we like the following characteristics;
  • Long term leases already in place to secure income streams/yield with strong companies as tenants
  • Regulated fund with separate custodian to handle all movements of funds
  • Liquidity option after 12 months ( though in some senses liquidity should be less relevant for pension investors)
  • Low levels of leverage LTV below 50% currently
  • Initial yield and yield projections look reasonable at 5%+ after costs
  • Projected return of 8%pa based on a 5 year hold period - assumes almost no increase in property value, instead yield and the repayment of senior debt over the period are the drivers of return
  • Combined with a self admin pension or ARF costing 0.25% p.a. or as a non pension investment we think it is worth having a look at ( min investment amount €125k unless going via Friends First for pension)
  • For ARFs, the income each year is not based on the asset value so you continue to get the same level of income even if property prices fall. We suggest ARF holders who are trying to deliver the 4%/5% return and keep the ARF capital substantially preserved, this should be interesting.
  • last point is the fund holds real assets in Germany in the event of any repeat of Euro break up risks this should be of comfort.
All in all we think its worth looking at, but there are risks as with any investment. We sent a briefing note to clients earlier this year. If you wish pm me your email and I can send you a copy of that. Don't take that as advice but as general observations to help you to assess whether or not its something you should look at more closely. For full disclosure we have no connection to Greenman though we have clients who have invested with them.

All the best Vincent
 
Hi Northstar,

I appreciate this article is 2 years old, but I am being offered the Greenman now, and would be interested in the Briefing Note you referred to for some background information.

Thanks,
Ronan

North Star said:
Hi Staple,

...

All in all we think its worth looking at, but there are risks as with any investment. We sent a briefing note to clients earlier this year. If you wish pm me your email and I can send you a copy of that. Don't take that as advice but as general observations to help you to assess whether or not its something you should look at more closely. For full disclosure we have no connection to Greenman though we have clients who have invested with them.

All the best Vincent
Click to expand...
 
RonanMc said:
being offered the Greenman
Click to expand...
Here's a more recent post

Greenman Retail Series 4

This fund is being offered to a friend of mine as having "an anticipated annualised return over 5 years of 8%" with "low to medium risk (ESMA risk rated 3)". Am I missing something here or is this incorrect? The broker has put the above in writing (email) and it is also on one or two websites...
www.askaboutmoney.com
 
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