Cording Real Estate Group, the Northern European real estate investment and asset management firm, has launched a £400 mln (€450 mln) fund that will invest in the UK private rented sector (PRS).
The fund, dubbed Cording UK Residential Investment Fund, will act on behalf of Continental European investors.
Some German institutional investors have provided equity commitments of £100 mln (€112 mln). Cording expects to get another £150 mln (€168 mln) from investors across Europe.
Using leverage, Cording deploy £400 mln to create a portfolio of PRS schemes in the next four ears. The firm’s intention is to deliver its investors a net income return of more than 5% per annum.
‘We are delighted with the support shown by our investors towards our PRS team and our vertically-integrated approach, providing in-house development management, portfolio management, asset management, leasing and property management,’ commented John Partridge (pictured), chairman of Cording.
The company also announced that the fund has a strong pipeline of investment opportunities and expects to transact on the first two deals shortly.
The open-ended fund is domiciled in Luxembourg. Pancura S.A. is the alternative investment fund manager and Aztec Group is the central administrator. Cording was advised by Clifford Chance in Luxembourg and Frankfurt.