Greenman NEXT - Fund Structure Explained

A guide to the fund’s structure, strategy, and key terms for prospective investors

Greenman NEXT is an open-ended European Long-Term Investment Fund (ELTIF) that invests in supermarket and grocery-anchored real estate across Europe. It is managed by Greenman Investments, which acts as the Alternative Investment Fund Manager (AIFM). Day-to-day property and asset management is handled locally by Greenman Poland.

This article explains how the fund is structured, how it generates income, and what investors should understand before considering an investment.

How Greenman NEXT Generates Income

The fund’s primary income source is rent paid by grocery tenants under long-term, inflation-linked leases. As of Q3 2025, tenants include established supermarket operators such as Kaufland, Lidl, Carrefour, and Biedronka. The weighted average remaining lease term across the portfolio is 8.2 years, and the average gross property yield is approximately 7.2%.

Leases are typically inflation-linked, which means rental income has the potential to keep pace with rising prices over the duration of the lease. This is a structural feature of the leases, not a guarantee of real returns.

Beyond Core Real Estate: The Four Investment Zones

While grocery real estate is the fund’s primary focus and main source of income, NEXT structures its investments across four zones. The additional zones are intended to complement the core real estate strategy and create the potential for incremental income over time. They involve additional investment and execution risk, and their contribution to overall returns is not guaranteed.

1. Real Estate – the core of the portfolio. Supermarkets generating long-term rental income.
2. Utilities – energy infrastructure installed at portfolio properties, including rooftop solar installations and renewable generation systems. These assets may generate income through power purchase agreements and by reducing tenants’ energy costs.
3. Networks – infrastructure that supports the movement of energy and goods across the grocery ecosystem, including EV charging assets and logistics connectivity. Returns depend on utilisation and market conditions.
4. Resources – investments in sustainability and innovation initiatives, such as low-carbon technologies, that are intended to support the long-term relevance of the portfolio. These are earlier-stage investments and carry higher execution risk.

The relative weighting of each zone will evolve over time as the fund grows and the portfolio develops. Investors should read the fund’s Key Information Document (KID) for a full description of the investment strategy and associated risks.

Who Greenman NEXT Is Designed For

Greenman NEXT is designed for investors who:

• Are seeking income-driven returns from real assets over a multi-year horizon
• Understand that real estate is an illiquid asset class and are comfortable with limited redemption flexibility
• Do not require access to their full capital in the short term
• Are comfortable with the risks associated with property investment, including valuation movements and tenant risk

The fund may be less suitable for investors who need short-term liquidity, are seeking rapid capital appreciation, or are not comfortable with the possibility that redemptions may be temporarily restricted during periods of elevated outflows.

Important Considerations

• Before making any investment decision, please consider:
• Past performance is not a reliable guide to future performance
• The value of your investment may go down as well as up
• If you invest in this product, you may lose some or all of the money you invest
• Property values can rise and fall, particularly in response to interest rate movements and economic conditions
• Tenant credit quality and regulatory changes can affect returns
• Revenue from EV charging and solar infrastructure depends on utilisation, energy prices, and market conditions
• Greenman NEXT is a long-term investment and is not suitable for investors who require short-term liquidity. Redemptions are subject to quarterly windows and minimum initial terms, and may be temporarily restricted in certain circumstances
• Distributions are not guaranteed and may vary

This article is for informational purposes only and does not constitute investment advice. Investors should consider their personal circumstances, read the relevant fund documents including the Key Information Document (KID), and where appropriate, seek independent financial advice before investing.

Greenman Investments is authorised and regulated as an Alternative Investment Fund Manager (AIFM). The funds referenced in this article are Alternative Investment Funds (AIFs) regulated under the European ELTIF framework.

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Interested in learning more about Greenman NEXT, including fund documents and the Key Information Documents, visit our website or speak to a member of our investor relations team.