DUSSELDORF, GERMANY-Locally-based project developer Frankonia Eurobau is to launch four special property funds by early next year, including a $400 million German office fund, a residential fund, and two aimed at protection of ancient buildings, according to its new CEO.

Georg Reul, former board member at Bonn's IVG Immobilien, said the two protection of ancient buildings funds, at about $133 million each in investment volume, should offer 3%-4% dividends plus tax deductions. The office fund will have relatively short lease agreements in order to refinance, and 5% dividends. The residential fund should provide 4%-5% dividends. The underlying equity of all funds will be 50%, with the same amount targeted in debt financing. They are all to be launched by the end of the first quarter.

“We want long-term and reliable investors,” said Reul, who was appointed as CEO earlier this month. He said he is looking for private and institutional investors, especially middle-sized pension funds. He told journalists the group has a 10-year plan and prefers small but safe returns and wants to buy stable objects for the portfolios. “Too many investors followed the exact same strategies in the past. It is time for diversification,” he said.