What's New In Investments, Funds? - Aegon

Editorial Staff

5 November 2019

Aegon
Aegon Real Assets US has closed on its first multi-family residential real estate development located within a designated opportunity zone.

The $60 million development, a joint venture between Aegon RA and a subsidiary of Kemper Corporation, is located in downtown Sacramento, California, one of 34 select metro areas that Aegon RA's proprietary analysis has deemed an attractive OZ market.

Qualified Opportunity Zones, as they are also typically called, were created by The 2017 Tax Cuts and Jobs Act and carry a range of tax incentives. Firms such as Cresset Capital Management , have launched funds to target these areas. The zones are designed to spur economic development and job creation in what are deemed to be distressed communities in the US. Taxpayers may defer tax on eligible capital gains by putting money into a zone and by meeting other tests. A taxpayer must realize capital gain income, invest it in a Qualified Opportunity Fund within 180-days of realizing the gain, and elect to defer the gain on his or her tax return.

Aegon said the deal is the first development within Aegon RA's opportunity zone investment strategy, which was launched in January.

"Aegon RA currently manages a $2.7 billion portfolio of multi-family assets located in OZs , which positions us as a uniquely qualified OZ sponsor," Philip J McAndrews, head of Real Estate Equity, said.

In a cautionary note, Aegon said that as of October this year, “there is uncertainty regarding future IRS and Treasury Department guidance on Opportunity Zones” and that investors should obtain tax advice before putting money into one of these vehicles.

Aegon Real Assets US is the primary real assets investment center in the US for Aegon Asset Management, part of the Netherlands-based Aegon Group.