GUF-I (German Usufruct Fund I) received the final approval from the DFSA and CES Investments is starting the official fund raising of EUR 100 million at the beginning of July.

The fund is designed as a safe heaven investment providing exceptional downside protection while offering double digit returns in the base case scenario.

The underlying assets of the fund is a portfolio of best-in-class off market German residential real estate. The fund is purchasing these assets with an average discount exceeding 40% with a Usufruct contract allowing retirees to increase their liquidity while retaining the right to live in their homes.

The fund is therefore receiving the rent upfront at day 1 (discounted purchase price) and has no rental risk. Where conventional portfolios have often problems with renters to pay on time, having properties empty (vacancies) and/or occurring maintenance costs, GUF-I has deducted the future rent upfront and the maintenance costs and other real estate costs including, but not limited to, insurance and property tax are the responsibility of the Usufruct holder.

GUF-I offers retirees a unique way to unlock the value of their assets by selling their homes with a Usufruct contract and use the liquidity to improve their quality of life. At the same time the fund provides an opportunity for investors to access the German real estate market by purchasing best-in-class off market properties with a significant discount.