Deutsche Finance Group: Thomas Oliver Müller seeks investors for strange club deal Big Red Chicago

Munich/Chigago – The CNA Center is one of Chicago’s most famous office buildings on the southwest shore of Lake Michigan in the US State of Illinois. The building with a height of 183 meters was built between 1970 and 1972 and was ceremonially opened in 1973. The red paint scheme earned the skyscraper the nickname „Big Red“, highlighting the functional building from Chicago’s skyline. The CNA Center was built as the headquarters of the insurance company CNA Financial, which relocated its offices in 2018 to a new building within Chicago, which also bears the name CNA Center. The windows of the old CNA Center are often specially illuminated on important occasions.
The „Big Red“ has long since captured the imagination of real estate investors. One of them is Deutsche Finance Group, which has made institutional private market investments in real estate, private equity real estate and infrastructure its business model. Founded in 2005, the finance group has earned a good reputation not only in Germany. The bank-independent Group combines the broad spectrum of capital management, fund administration, fiduciary activities, investor administration and asset management. Its declared aim is to offer private investors high-yield investment models that were previously closed to the broad market. In addition to its headquarters in Munich, the financial services provider also maintains branches in Denver, London, Zurich, Luxembourg and Madrid in order to make the best possible use of its international partner network. The assets under management currently amount to 6.5 billion euros. With around 120 employees, Deutsche Finance Holding AG manages over 3,750 direct investments in 47 countries. 15 institutional mandates and 16 international awards can be regarded as proof of confidence.
For the real estate financing also the Investment professionals from Munich work ever more strongly with club deals. In these co-investments, investors join forces to cover the capital requirements for specific real estate projects. The club deals are joint investments of different investors in the real estate market in order to acquire a single property or an entire portfolio. Thomas Oliver Müller, CEO of Deutsche Finance Group, recommends club deals as an institutional investment strategy and says: „In a club deal, several institutional investors usually work together as partners to successfully realize a temporary project together. All details are agreed upon between the participating investors, and all important decisions are made jointly. It is thus a genuine entrepreneurial real estate investment in which the investors play an active role.“
In club deals, each participant is involved in the decision-making process and bears joint responsibility for the success of the investment. This is an essential difference to the well-known real estate funds. Club deals offer investors several advantages: great flexibility in the legal structure of the investment as well as a high degree of control and effectiveness because the partners pursue identical interests. Deutsche Finance Group therefore focuses on institutional club deals for private investors to bundle private and institutional capital for real estate developments. Co-investments are a real innovation in the market for tangible assets and stand for shorter terms and tendency to high returns. With prime investments such as the major project „Olympia Exhibition Center“ in London and the property known as the „Coca-Cola Building“ at 711 Fifth Avenue in New York, Thomas Oliver Müller’s group of companies has laid the foundations for a successful institutional club deal series.
With the new institutional club deal Chicago, investors can participate in a 45-story office property in an attractive location in the business center of Chicago. Meant is the legendary „Big Red“. The property „333 South Wabash“ has a rental area of around 112,000 square meters. As part of a fundamental renovation, it has been upgraded to a Class A office property since 2018 and is currently 88 percent leased. The Scope rating agency has given the alternative investment fund „Deutsche Finance Investment Fund 16 – Club Deal Chicago“ a rating of a (AIF). In particular, the good creditworthiness of the main tenants, the security of income due to the long lease terms and the great transaction competence of Deutsche Finance Group were decisive for the positive result. In the rating agency’s summary, there is talk of a break-even probability of 99.3 percent, a loss potential of 0.7 percent and a Value at Risk of 0.0 percent. A loss of investment capital is not achieved in 99 percent of all simulations. Theo Randelshofer, Chairman and Managing Director of Deutsche Finance Solution GmbH, commented: „With the institutional Club Deal Chicago, private investors gain access to a prime investment with a long-term lease with high current cash flow and interesting potential for value appreciation.“
The strategic advantages of institutional club deals are obvious to investment professionals. Symon Hardy Godl, the managing director of Deutsche Finance Asset Management GmbH, considers it the ideal form of investment when it comes to active value enhancement: „Both the structuring of an institutional club deal and the value enhancement strategy require an active investment management approach on the part of the investor. The institutional club deal also allows direct influence on the asset and ongoing monitoring of the realization of value enhancement measures. Due to the generally manageable number of investors, important decisions are simplified and a later exit is easier to realize.“
Godl is therefore promoting Deutsche Finance Group’s latest institutional club deal: the „Big Red“ as a highly attractive office tower in the third largest city in the United States. The innovative metropolis is the most important financial center of the Midwest. The prime investment „Big Red“ is an office tower in a prime location in the financial district. The building with its 183 meters in height and 45 floors guarantees a stable cash flow based on long-term leases with first-class tenants. The rental agreements include an annual rent increase agreement. More than 75 percent of the tower’s leased space is accounted for by tenants with an investment grade rating, and the occupancy rate of the lettable space is 88 percent. The Chicago Office Tower was acquired via the investment platform of Deutsche Finance Group and transferred to an institutional mandate. Two independent appraisals confirm a current value that is significantly above the purchase price. This impressively underscores the Office Tower’s potential for value growth. Private investors can participate in the deal with a minimum deposit of USD 25,000.