This month we invited Greenman to talk to us about the key features of the Greenman Open Investment and we were joined by Peter O’Reilly & Roddy O’Connor to tell us more.

Greenman’s sole investment focus is the creation of consistent annual income for their investors.

As stock market volatility increases, long-term investors recognise the need for greater diversification in their portfolios. Alternative investments have been on the rise since 2005 as more investors and financial advisors have begun to explore investment options outside of traditional stocks and bonds providing investors with a risk/return profile that is different from that of equities, bonds or cash. While alternative Investments don’t take the place of the more traditional assets they should be used to diversify financial portfolios. So, instead of putting all of your money in one investment pot, depending on your attitude to risk and of course your circumstances, it might be worth putting some in stocks, some in bonds, and some in alternative investments.

 Some advantages of Alternative Investments are as follows;

  1. Diversification potential
  2. Mitigate market volatility
  3. New exposures and opportunities
  4. Potentially higher returns over the long-term

Greenman Open – Key strategic focuses are:

ONE COUNTRY

Since 2005 Greenman has only operated investment funds which own assets in one country, Germany. This national focus has helped our teams develop significant market knowledge, awareness and insight.

One Asset type

Greenman only acquires one asset type – German food dominated retail parks, hybrid centres, Fach­marktzentrum and retail warehouses. This asset type focus ensures that all our operational procedures have been designed specifically for this asset type.

Owner/Managers

Unlike many investment managers, Greenman provides both asset and property management services to their investments. With a team based in Berlin providing these daily management services, Greenman are in a unique position to recognise, and act upon, asset management opportunities.

WARLT Maintenance

Weighted Average Remaining Lease Term (“WARLT”). A large percentage of a Centre’s value is calculated by assessing the amount of rental income it will generate over the remaining term of its tenant leases. Operationally, Greenman concentrate on pro-actively seeking opportunities to nego­tiate tenant lease extensions that maintain/increase a Centre’s WARLT and accordingly protect that Centre’s value.

Sustainable Debt Structures

Greenman’s funds all have low maximum loan to value (“LTV”) restrictions, typically balancing investor equity 60:40 with bank debt. These low levels of debt significantly reduce the mortgaging risks and ensures that a higher proportion of collected rents are available to make annual investor distributions.

Greenman also have a good track record, since their first investment in 2009, Greenman have been producing annual returns from surplus rent to investors.

Their tenant stability is also a factor, in that Greenman Invest in large food dominated retail parks, hybrid centres and retail warehouses, anchored by Germany’s largest food retailers including Edeka, REWE and Aldi. Anchor tenants have over 99.7% chance of meeting their rental obligations as rated by Creditreform, Germany’s largest credit rating agency.

Highly Regulated Fund Manager

The Funds Investment Manager, Greenman Investments is a sector specialist, fully authorised by the Central Bank as an Alternative Investment Fund Manager under the EUs new AIFM Directive. Regulated by the CSSF in Luxembourg and under CBI include reg no.

It is important to note that if you are considering investing in Greenman, we must carry out a full assessment of your attitude to risk before any recommendations are made.

Should you require further information on the Greenman Open Fund, please contact Ross or Trish on 01 4972544.