Computer visualization of a modern property

Frequently asked questions

Your questions – our answers.

Key data of the investment offer

What is the minimum investment amount, and in which currency must it be made?

The minimum investment amount (subscribed limited partnership investment) for each investor is generally at least US$10,000 plus a 5% premium. The capital contribution account is held exclusively in USD at a German bank and has a German IBAN. The usual online transfer programs can easily transfer the transfer amount in USD from a EUR account, and the debit is made at the current exchange rate. There is no upper limit for the respective limited partnership contribution. The planned limited partnership capital amounts to USD 30 million, with the possibility of an increase to a maximum of USD 80 million. The subscribed amount exceeding the minimum contribution of USD 10,000 must be divisible by USD 1,000.

How long does participation last and can it be extended?

The initial term of the fund company is limited to June 30, 2030. An extension of the initial term may be decided once or in several steps for a total of up to two years. The initial term of the fund company is not identical to the duration of the capital investment. The fund company plans to develop and construct real estate. A three-year rental phase is planned after completion. The sales process is to begin during the rental phase so that the fund can be liquidated before the end of the initial term if necessary. Capital repayments are planned from the sales. During the remaining term, only the structures will be wound up, tax issues clarified and a final payment made at the end.

What options are available to investors if they need to access their investments early?

Investors have no right of return under normal or exceptional circumstances. The investor cannot redeem or exchange shares in the fund company because the funds are tied up in the investments. The sale of corresponding fund investments is possible via so-called secondary markets. However, this is highly dependent on market liquidity and demand for the corresponding shares. There is a risk that a sale will only be possible at a significantly lower price than intended or, in the worst case, not at all.

It should be noted that the fund is a so-called "short-term fund." The fund company will be liquidated as planned on June 30, 2030. Investors should therefore plan to tie up their funds for this (relatively short) period and not completely rule out the possibility of a term extension of up to 24 months.

What is the expected timeframe for the two planned properties?

We develop the properties together with Empira AG from the start of construction. With co-investment, investors invest in the three phases of the highest value creation: construction, subsequent letting over three years, and sale.

As is common in Germany, the letting of new-build apartments can only begin shortly before completion. Active letting will commence around three months before completion with the furnishing of a show apartment and an attractive and informative website.

The letting of commercial space, on the other hand, can begin with a lead time of one year.

Sustainability and construction

What level of LEED certification is being sought for the properties and why?

The Dallas development project is aiming for the first level of LEED certification, while the Miami project is targeting LEED Silver certification, the second level. The LEED sustainability system evaluates various sustainability aspects, including location and mobility, sustainable construction methods, water efficiency, energy and atmospheric management, indoor air quality, innovation, and the use of materials and resources. The LEED certification ensures that the projects are implemented in accordance with strict ecological and sustainability criteria, which benefits both the environment and future residents.

Is sustainability also important when it comes to furnishings?

Great importance is also attached to sustainability in the furnishings, particularly in view of the requirements of LEED certification. This certification relates in particular to the criteria "Materials and Resources" and "Indoor Environmental Quality," which ensure sustainable interior design. The floor coverings, cabinets, and wall coverings used have been selected to meet the requirements for low emissions of volatile organic compounds (VOCs). We ensure that paints, adhesives, and sealants applied on site have a very low VOC content and thus have a positive impact on air quality. For kitchen equipment and the use of household appliances such as washing machines and dryers, we plan to use only ENERGY STAR-certified appliances that meet strict energy efficiency standards in over 75 categories. The criteria for ENERGY STAR certification include that a switched-on appliance or active component must switch off automatically after a certain period of time and that the energy consumption of each appliance must not exceed a maximum permissible value over a specified period of time. This is intended to reduce energy consumption and minimize the ecological footprint of the object.

Tax regulations, investment and financing plan

Do investors have to file a tax return in the US?

Investors are not required to file a tax return in the US. Investors must complete a W-8BEN form together with the subscription form. The fund company will submit the necessary documents and file the IRS Form W-8IMY together with the investors' W-8BEN form. These forms confirm that investors are taxable in another country, such as Germany, and are therefore entitled to a reduced withholding tax rate on their income from US investments in accordance with the double taxation agreement between the US and Germany.

How will my income be taxed in Germany?

The income is considered "income from business operations." However, taxation has already been paid via a special purpose vehicle of the fund that is taxable in the US. The income is therefore tax-free for German investors under the US-Germany double taxation agreement, but is subject to the so-called progression clause. According to this clause, when calculating the personal tax rate, it is assumed that this income was earned in Germany. This rule therefore has no effect on investors who are already taxed at the highest progressive tax rate on other income. Please note that the tax framework in both Germany and the US is subject to change. Individual tax advice is recommended.

What happens if the minimum placement volume of USD 10 million is not reached?

If the minimum placement volume of USD 10 million is not reached by September 31, 2026, the fund company will be dissolved in accordance with § 22 of the partnership agreement without further resolution by the shareholders. No investments will be made until the minimum volume is reached. Investors who have already made their payment will receive a 100% refund of their invested capital, including any premium paid. Pangaea Life Capital Partners AG guarantees this repayment and undertakes to pay the outstanding amount immediately if the fund company's assets are insufficient.

Investment process

Sign the Subscription Agreement & Complete Tax Form

You sign the subscription agreement and fill out the W-8BEN U.S. tax form required for your investment.

Receive Confirmation Letter

Once your subscription is accepted, you will receive a confirmation letter from trustee PVT and instructions for the USD wire transfer.

Transfer Execution

You transfer the agreed amount in U.S. dollars following the payment instructions via your bank.

Payment Confirmation

After your payment is received and the 14-day withdrawal period ends, PVT confirms the full receipt of funds and introduces the investor administrator, Pecura.