JUNE 2015
Summary of Terms
Investor return
The Fund aims to achieve, net of all management and transaction expenses, a minimum
internal rate of return in excess of 8% p.a. over rolling five year periods.
Returns paid to investors
Bi-annually in arrears or accumulated depending on share class
Investor Liquidity
3 year lock in, 6 months notice for redemption
Minimum Investment
GBP 10’000 (Class A, D), EUR 10’000 (Class B, E) or USD10’000 (class C, F)
Performance Fee
20% (over 10% hurdle) of
increase on NAV
Exit Fee
Nil, please refer to Supplemental Particulars
AMC
1.25%* per annum of NAV
subject to £15,000 minimum
ISIN Code
See Supplemental Scheme Particulars
Assets of the Fund
German Real Estate
Fund Inception
February 2015
About the Asset Class
Dolphin Property Fund 1 (DPF1) is a global real estate
investment fund, investing directly or indirectly in a
portfolio of real estate assets belonging to several key
sectors such as residential, retail, commercial, logistics,
industrial or leisure. DPF1’s portfolio currently allocates to
the fast-developing German and UK real estate sectors.
Real estate investments focused on by investment
managers include New Build developments and historic
Listed Building conversions. DPF1 opportunistically
collaborates with leading developers to identify tax and
demographically driven investment opportunities. The
fund seeks partners that have accumulated a wealth of
experience and knowledge, ensuring surety of execution
and profitability.
* Other standard fees related to the ongoing operation of the Dolphin Property Fund 1 will be charged. Full details available in the Supplemental Scheme Particulars and Supplemental Particulars.
Investment in Dolphin Property Fund 1 can only be made on the terms of the current cell particulars and the scheme particulars for GFG Fund PCC Limited.
Expected return on
investment
8.0%
How we achieve performance for
investors
DPF1 takes advantage of the strong economic
environments that exist in UK and German cities,
particularly London and main centres in Germany
including Berlin. DPF1 takes on equity positions in
developer projects and gains return from the profitability
of the projects. DPF1 allocates funds to opportunities
identified from within our experienced network of real
estate professionals with proven track records in their
areas of property expertise.
Investment Philosophy
The fund management team is dominated by a ‘bottom
up’ style and philosophy to recognise and exploit value
situations in the real estate markets. This approach applies
to both Direct Investments and Indirect Investments. When
making investments in real property, property equity, debt
securities and other property related assets, the
investment approach of the Fund seeks to breakdown the
underlying real property or portfolio at the individual
company level in order to view the gross asset spread,
identify the specific and evaluate the current and
forecast earnings and future asset values. Regional and
sector diversification will not be a core focus. The Fund
aims to maintain a diversified and fully invested portfolio,
with a target of no more than 10% allocated to cash or
cash equivalent securities. In order to fulfil the aim of
maintaining a diversified portfolio of assets and achieve a
sufficient spread of risk, the Directors of the Fund do not
intend to invest more than 33% of the assets of the Fund in
one particular asset. The Investment Managers, as the
Directors of the Fund, will monitor the diversification of
assets closely and aim to achieve a sufficient spread of
risk into varied asset classes over time.
DPF1 property market focus
Germany and the UK, will remain two of the most attractive
real estate investment markets in Europe, and throughout
the world. The German market offers investment
opportunities for all categories of investors. Despite the
positive economic indicators and the country’s continuously
increasing rents, the German market requires educated
and experienced investors and advisers. Investors with a
comprehensive understanding of the market and the
regional specifics will have clear advantages.
A significant increase in value added investments in order to
allow for sufficient return is expected.
As for Great Britain, in most areas of the UK the real issue is
undersupply, which has been helping underpin price
growth. Going forward, it is almost impossible to imagine
new-build delivery ever outpacing demand for housing in
London, around the key development hubs around the
edge of central London. The expected rise in property
prices is expected to average almost 20% for the UK,
providing interesting opportunities in almost every part of
the country.
Independent valuation and insurance
Real estate and immovable property or rights over such
property shall be valued by a certified appraiser appointed
by the Company in respect of each Sub-Fund and
accordingly identified in the relevant Supplement. Such
certified appraiser shall be required to satisfy the criteria for
valuation experts.
Fund Structure
The Fund is a cell of GFG Fund PCC Limited, a protected
cell company registered with limited liability in Guernsey
on 14 March 2014 having registration number 58160.
How we manage risk
By entering into partnership agreements with the
developer, we ensure a high quality collateral throughout
the transaction cycle while benefiting from the high
returns enjoyed by the bridge financing sector. We
allocate funds to opportunities identified from within our
experienced network of real estate professionals with
proven track records in their areas of property expertise.
Our allocation process embeds risk management by
submitting all investment decisions to our own advisory
team who possess expertise in many types of property
transactions and varying geographical locations, as well
as their deep understanding of the financial sector.
Custodian
Deutsche Bank International Limited
(Guernsey Branch)
Auditors
BDO Limited (Guernsey)
Legal Advisors
Collas Crill
There are risks associated with an investment in the Fund
and as such, it is intended for sophisticated investors only.
The investment objective and policy of the Fund
anticipates that investment may be made in real
property, property equity and debt securities, property
related assets, derivatives and other securities, and as the
Fund’s investment programme or market conditions
develop over time, it may be subject to risk factors not
currently contemplated. Each prospective investor should
carefully review the Scheme Particulars and consider
related risk factors.
General Enquiries
Louvre Fund Services Limited
St Peters House
Le Bordage, St Peter Port, Guernsey, GY1 1BR
Channel Islands
T: +44 (0)1481 727249 | [email protected]
The information provided in this confidential document may include estimates, opinions, forward-looking statements, and unverified statements from third-party sources. It is intended primarily for internal
staff, but may be distributed upon request to qualified investors for authorised purposes only. This information is being furnished to you solely for your information and personal use and does not constitute
an offer or a recommendation to purchase or sell any security. Past performance is not a guide to future performance. Investment in Dolphin Property Fund 1 can only be made on the terms of the current
cell particulars and the scheme particulars for GFG Fund PCC Limited.