Since the beginning of the year 2009, DERECO from Cologne has been holding intensive
meetings with customers from the sectors private banks, family offices and property administration with regard to the initiation of closed-end funds in the form of private placements. These currently arouse the interest of partner enterprises with smaller, familiar structures that have already been represented successfully and reputably on the market for a longer period of time. “Particularly recently, “big“ names have caused many problems,“ says Tassu M. Degen, managing director of DERECO. “If one enjoys a professional and consistent position on the market with one’s company and offers individual investment models with low structuring costs and one’s own contribution of capital, the doors are open for constructive negotiations,“ says Degen.

Up to now it has become clear in various places that wealthy private investors have an increasingly strong desire to invest in property interests. The reasons for this are mainly the assumption of higher inflation and the idea that tangible assets promise returns that are lower on the one hand but, on the other hand, more secure and sustainable. Often there is no question of participation in public funds for larger private investors because, due to higher structuring costs, they deviate too far from a direct investment. Furthermore, due to the large number of participating investors, they are too anonymous and inflexible. Most private investors lack time, know-how, access to the market and sometimes even the capital for direct investments to be able to acquire the desired product without any partners. Even the necessary extent of administration and management presents an obstacle for many people. Therefore, with his enterprise DERECO Real Estate that, since 2005, has already accompanied transactions in an advisory capacity on behalf of
wealthy investors from Germany and the Netherlands to a value of more than 800 million euros, Tassu M. Degen offers an individual, personal and exclusive type of cooperation. The advantages of lower structuring costs and one’s own capital participation together with the equity holding of reputable cooperation partners in the business create a high level of consultation from one source. The demands for informative reporting systems, a professional transaction team and clear cost structures have risen with the changes in market conditions during the past year.

As far as the types of products are concerned, Tassu M. Degen gives preference to long-term investments in core and core plus products such as residential and retail properties. Sporadically, he also includes office premises with contemporary concepts in good locations. At present, there is little focus on properties run by operating companies as well as special properties, especially those with only one main tenant in B locations. According to Degen, investments are primarily made in Germany and the Netherlands.

Talks with various financial institutes with regard to closed-end funds with Dutch properties are currently also being held with very promising results. In this respect, DERECO - in a
joint venture - is availing itself of the Europan Real Estate Fund B.V., Netherlands (EREF). Together with its managing director, Mark Kraaijeveld van Hemert, Tassu M. Degen is, there-fore, also able to offer a strong team on the Dutch market. For several years, Mark Kraaijeveld van Hemert held a leading position with DTZ Zadelhoff in the Netherlands and, following this, was director for the fund business of MOC Capital in the Netherlands.
In 2006, he founded the enterprise Europan Real Estate Fund B.V. that, so far, has initiated closed-end funds in Germany for Dutch investors. In this connection, DERECO was engaged as an exclusive consultancy company.