Greenman Investments, an Irish real estate investment fund manager, has announced the conversion of its flagship fund, Greenman Open, into a European Long-Term Investment Fund (Eltif). This conversion, on 13 September 2024, aligns Greenman Open with the updated Eltif 2.0 regulations, which aim to simplify investment rules and enhance accessibility for retail investors across the EU. The fund is domiciled in Luxembourg and regulated by the Luxembourg Financial Sector Supervisory Commission (CSSF).
According to Greenman, the newly converted Eltif is backed by 90 real estate properties in Germany, with a gross asset value of €1.28bn. Greenman Open has set a long-term goal of expanding its investor base to 100,000 by 2033 and anticipates that its net assets will exceed €3.5bn.
The transition to an Eltif has enabled Greenman Open to significantly lower its investment threshold to €1,500, making the fund more accessible to a broader range of retail investors, according to the firm’s press release. Designed to generate income through investments in real estate, Greenman Open focuses on German retail properties leased to leading grocery retailers, including Rewe, Aldi, Lidl, Edeka and Kaufland, a representative of Greenman Investments told Delano.
Recognised as an article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR) and the EU taxonomy, Greenman Open is currently one of the largest article 9 real estate fund available, stated Greenman. The fund is committed to reducing its real estate’s Scope I and II greenhouse gas emissions, with a target of achieving net zero by 2050.
In addition to its real estate investments, Greenman Open has diversified its strategy to include investments in the utilities, resources and networks sectors. This diversification is intended to bolster the resilience and growth potential of its core real estate portfolio.
John Wilkinson, CEO and executive director of Greenman, remarked, “The shift to Eltif status presents a fantastic opportunity to broaden Greenman Open’s reach across Europe. We are seeing considerable interest, particularly from German retail investors, where the appeal of grocery-anchored assets is particularly strong.”
Tom Göricke, partner, and Jérôme Mausen, counsel, from the law firm Elvinger Hoss Prussen, which advised in the conversion process, stated in the announcement, “We are delighted to have assisted Greenman Investments in this successful transition to a Luxembourg part II fund under the Eltif regime. This provides the framework for opening the fund to retail investors, which should enable continued growth under a robust regulatory framework, positioning it for long-term success and sustainability.”
While Greenman Open will continue to focus on German grocery retail assets, the Greenman Group also holds grocery real estate assets in France through Greenman ARTH and in Poland through Greenman Next.