German property company to invest AIM funds

German property investor Taliesin Property Fund has raised £25.7 million (€37.8 million) and begun trading on AIM.

Taliesin, which is incorporated in Jersey and was formed to invest in Berlin’s residential property market, has been valued at £31.3 million (€46 million) following the IPO in August 2007.

Its current portfolio consists of 36 properties in the German capital, which was compiled at a cost of €53.3 million. It plans to add to this number following its latest windfall.

Taliesin’s nominated adviser and broker was Insinger de Beaufort, which was led by Peter Ward and William Looker.

According to Taliesin’s admission document: “The directors believe that the German economy is advancing and that the protracted period of under-performance in the German residential property sector is giving way to more buoyant conditions.

“The directors also consider the residential market in Berlin to be particularly attractive, partly because of yields, which can match or exceed funding costs, and partly because it is possible to buy property at a discount to replacement cost.

“The company also selectively invests in property in other cities close to Berlin and may purchase entirely non-residential units up to 25% of its total assets. The local knowledge and presence of the company’s investment adviser, which undertakes all the day-to-day asset management and property acquisition responsibilities, enhances the position of the company in sourcing property in the areas of the city with the highest perceived investment potential.”

The company has sought admission to AIM by way of introduction to provide enhanced liquidity for the company’s existing shareholders and to facilitate potential fundraisings in the future, if such fundraisings are deemed by the directors to be in the interest of shareholders.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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