We address our information and offers exclusively to professional and semi-professional investors. They are not suitable for private investors.
Professional investor
see section 1 (19) no. 32 KAGB (German Capital Investment Code)
Professional investor means any investor who is considered a professional client within the meaning of Annex II to Directive 2004/39/EC or who may be treated as a professional client upon request.
Semi-professional investor
see section 1 (19) no. 33 KAGB
Semiprofessional investor is
a)
every investor,
aa)
who undertakes to invest at least 200,000 euros,
bb)
who states in writing in a document separate from the investment commitment agreement that he is aware of the risks associated with the proposed commitment or investment,
cc)
whose expertise, experience and knowledge the AIF management company or the marketing company appointed by it assesses without presuming that the investor has the market knowledge and experience of the investors listed in Section I of Annex II to Directive 2004/39/EC,
dd)
where the AIF management company or the marketing company appointed by it is satisfied, having regard to the nature of the proposed obligation or investment, that it is in a position to make its own investment decisions and understands the risks involved and that such an obligation is appropriate for the investor concerned, and
ee)
to which the AIF management company or the marketing company acting on its behalf confirms in writing that it has carried out the valuation referred to in point cc and that the conditions referred to in point dd have been met,
b)
a director referred to in Article 37(1) or employee of the AIF management company, where he invests in AIF managed by the AIF management company, or a member of the management or board of directors of an externally managed investment company, where he invests in the externally managed investment company,
c)
any investor who undertakes to invest at least EUR 10 million in an investment fund,
d)
each investor in legal form of
aa)
a public-law institution,
bb)
a foundation under public law, or
cc)
a company in which the confederation or a federal state holds a majority stake,
if, at the time of the investment of the institution, foundation or partnership, the federal government or the state is invested in the special aif in question.
The content of this website is for your information only. They do not constitute an offer or recommendation to buy or sell securities, fund units or the like. The information provided here is not suitable for making such investment decisions. The content preparation and supply of sales documents are subject to strict regulation, which can only be fulfilled by written documents obtained from 5QRE. Nor does 5QRE intend to use the information on this website to promote the sale of investment products. Finally, the information on this website is not intended to provide legal or tax advice.
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If past performance is shown, no conclusions can be drawn about future performance. It cannot be excluded that in the event of a return or sale, the investor will not receive back the invested capital in full or in part. To the extent that statements on this website do not point to historical facts, these are expectations, estimates or forecasts. As a result, they may differ from actual results in the future.
Despite careful preparation of the website, we assume no liability for the correctness, completeness, accuracy or appropriateness of the information and estimates. This applies in particular to any legal or tax components of the presentation. No liability is assumed for damages resulting from the use of the information retrieved from this website.
The Federal Financial Supervisory Authority (BaFin) has granted Five Quarters Real Estate AG permission to operate as an AIF capital management company.
Transparency in dealing with sustainability risks
Strategic management of sustainability risks
When making investment decisions for our investment funds we also take sustainability risks into consideration. A sustainability risk is an environmental, social or governance event or condition, the occurrence of which at the corporate level could have a material adverse effect, actual or potential, on the assets, liabilities, financial position, profit or loss and reputation of the investment fund and 5QRE, and therefore on the value of the investor’s investment.
Sustainability risks in the areas of climate and environment are categorised into physical risks and transition risks:
- physical risks: physical risks include extreme weather events and their consequences (namely periods of heat and drought, rising temperatures, increased risk of forest fires, flooding, storms, etc.) and long-term changes in climatic conditions (e.g., frequency of precipitation, weather instability, sea-level rise, etc.). The realisation of physical risks can significantly reduce the value of a property, damage it or even destroy it completely.
- transition risks: transition risks include, for example, risks that may arise from the transition to a low-carbon economy (and the possibly associated increase in the price and/or shortage of fossil fuels). Among other things, political measures can lead to an increase in energy prices or high investment costs concerning legally required refurbishments of properties (e.g., regulatory increase in the energy efficiency of buildings). The decline in demand for emission-intensive real estate can also represent the realisation of a transitory risk.
Events, developments or behaviour that can be attributed to the areas of social and corporate governance can also represent a significant sustainability risk, insofar as the probability of occurrence has not been sufficiently taken into account in the valuation of an investment.
The review of sustainability risks is part of the due diligence process in the context of property acquisition. As part of our investment process, we include all material risks in the investment decision and also evaluate them on an ongoing basis. Sustainability risks, which can have a significant negative impact on the return of an investment, are also taken into account. To avoid sustainability risks, criteria such as energy consumption, the quality and service life of the building materials used, the location of the property to be purchased (e.g., proximity to flood plains, etc. and, if necessary, corresponding protective devices such as flood protection gates), the presence of contaminated sites or the connection to the public transport system are already collected and taken into account in the purchasing process. From a strategic point of view, we are working on continuously expanding this catalogue of criteria against the backdrop of sustainability risks for the acquisition process and incorporating it into the purchase decision. In doing so, we will further specify our fixed investment rules, for example in the form of exclusion criteria or the best-in-class approach with regard to selected criteria. Among other things, the Regulatory Technical Standards (RTS) of the ESA (European Supervisory Authorities), which are currently being developed, will be conducive to advancing the integration process of sustainability risks into the purchasing process. We continuously review the consideration of sustainability risks and the expansion of the catalogue of criteria taken into account. In addition, the review of sustainability risks is a separate component of our risk management.
Adverse sustainability impacts
At a corporate level, we work towards including all significant adverse impacts of investment decisions on sustainability factors, i.e., adverse impacts in particular on environmental, social and labour issues, respect for human rights and the fight against corruption and bribery (so-called “Principal Adverse Impacts”) in our decisions. The measurement and reporting of adverse impacts of investment decisions on sustainability factors require that a corresponding process is implemented at the company level following the legal requirements. Due to the current legal uncertainties regarding the concrete requirements for measuring and reporting Principal Adverse Impacts, we have decided to observe further legal developments and to fully implement already existing processes at a later stage. Although we are already developing existing strategies to manage the main adverse impacts of investment decisions on sustainability factors, we cannot say with certainty at this point that we already fully consider the adverse impacts of investment decisions on sustainability factors.
Strategic management of sustainability risks in relation to remuneration components
The variable remuneration of our employees is, of course, in line with the inclusion of sustainability risks from the areas of environment, social affairs and corporate governance (ESG). We have set ourselves corresponding ESG goals, which are also pursued at the level of employee remuneration. The company’s turnover, from which the remuneration of all employees is paid, is generated in compliance with the ESG goals. Thus, the goals are linked to the remuneration of the employees.