- Open-ended infrastructure special fund for institutional investors
- ESG-compliant investments in photovoltaic, wind power, battery, biomass and hydrogen projects
- Target volume 300 million euros
Heidelberg, 12 December 2023 - FOM Invest GmbH is rapidly implementing the development of its new renewable energy business segment. The German Federal Financial Supervisory Authority (BaFin) has granted marketing authorisation for the first product in the KVG's second asset class, the BRAWO Renewable Energy Fund I
("BRAWO REF I"). The target volume of the fund is EUR 300 million, the target return is seven per cent (IRR) and the distribution yield after the end of the investment phase is six per cent per year. The debt ratio will reach a maximum of 60 per cent at fund level. As an open-ended infrastructure special fund, the fund is aimed at institutional investors. It will primarily invest in photovoltaic, wind power and battery projects; biomass and hydrogen projects may add up to a maximum of 20 per cent of the fund’s assets. In order to exclude currency risks, only projects located in the eurozone will be considered. The first closing is already planned for spring 2024 and suitable projects are currently being analysed for purchase. Investments are made exclusively in project companies that hold the corresponding assets.
Prof Reinhard Walter, Managing Partner of FOM Invest, comments: "Renewable energies fit perfectly with our ESG strategy as an asset management company. In addition to our real estate fund products we have already implemented in accordance with Article 8 and 9 of the EU Disclosure Regulation, our latest fund offers investors attractive investment opportunities in a market with high and sustainable demand. This makes it an ideal addition to their portfolios."
Since March 2023, FOM Invest has been part of BRAWO GROUP, the corporate investment company of Volksbank BraWo. FOM Invest began preparations to enter the new business segment a year ago and gained Holger Pfleger, a proven expert in this segment, as an additional managing director in March 2023. Since then, the team has been further strengthened with experienced professionals in this asset class.
Holger Pfleger comments: "BRAWO REF I will invest in a balanced mix of high-yield projects with secure long-term income. As a result, investors will find a resilient investment fund that is equipped for the future. The swift approval by BaFin rewards our intensive and thorough engagement with the growth segment of renewable energies."
Press contact
RUECKERCONSULT GmbH
Christof Hardebusch
Phone: +49 221 292956313
hardebusch@rueckerconsult.de
Contact FOM Group
Frank Schindelbeck
Phone: +49 6221-3636618
f.schindelbeck@fomrealestate.de
About FOM Invest
FOM Invest is BRAWO GROUP's and FOM Real Estate's expert for the property and renewable energy asset classes. Its core competences lie in product development, investment management, fund management and asset management for real estate and renewable energy plants. In March 2023, FOM Real Estate and Volksbank BRAWO signed a long-term partnership to develop the business activities of FOM Invest. This was preceded by a successful collaboration at project level since the end of 2021. The
core of FOM Invest's
corporate strategy is the manage-to-ESG approach for real estate, in which existing buildings and complementary new buildings are transformed to be ESG-compliant. In renewable energies, FOM Invest focuses in particular on solar parks and onshore wind projects. There is a considerable need for investment in both areas, which can only be fully realised with private investment. FOM Invest is a fully licensed AIF investment management company (KVG). In addition to investment opportunities via individual mandates or club deals, FOM Invest also designs the launch of pool funds in accordance with the KAGB.
About FOM Real Estate
FOM Real Estate is an owner-managed company and has been operating successfully as a project developer, asset manager and investor for over 25 years. FOM is one of the leading players in the commercial property sector in Germany and also works abroad with selected international partners. FOM develops the right property based on the specific needs of a user, an investor or on its own initiative: individually, efficiently and with a secure legal and financial basis. FOM carries out projects in their entirety and acts as general contractor and project manager for their realisation in accordance with the contract. Since 1997, FOM Real Estate has successfully completed projects with a total volume of over 4 billion euros.
About Volksbank BraWo
As one of the largest Volksbanks in northern Germany, Volksbank BraWo and its group of companies, the BRAWO GROUP, with over 1,700 employees, are an important success factor for the economy in the greater Braunschweig-Wolfsburg area. It currently has total assets of around six billion euros and unites over 300 companies under the umbrella of the BRAWO GROUP, which are firmly anchored in the regional market, but some of which also operate nationwide. It is characterised in particular by its commitment to the real estate industry and also operates very successfully as a project developer throughout Germany. With its Real Estate division and the associated subsidiaries, it supports properties throughout their entire life cycle. From large-scale and long-term urban district development to building land development, investment and asset management, property management and the brokerage of private and commercial properties through to home and commercial property financing - over 100 competent contacts are active here. Volksbank BraWo has also been investing in existing properties for around 15 years, for which it generally pursues a long-term ownership strategy. Volksbank BraWo's rented space amounts to approximately 600,000 square metres. The total value of Volksbank's property portfolio is over one billion euros.