Corestate Capital Holding said on Monday it has raised over €130 mln of initial equity for the launch of a new open-ended investment fund focusing on German residential and commercial assets.
The Corestate Opportunity Deutschland I vehicle is targeting a volume of €800 mln and will aim for a return of 7% under a value-add risk profile.
The fund has been seeded with an initial portfolio of seven properties for a total investment of €241 mln. The properties are located in Augsburg, Hanover and Munich, among other places, and have a current market value of €262 mln.
'With the new fund, we are adding another attractive option to our product range for institutional investors. We are thus specifically expanding our product range in order to meet as many investment and risk needs as possible. With our ever-increasing range of funds, we are generating further growth and at the same time putting our revenue structure on an even broader and more solid footing,' said Michael Bütter, CEO of Corestate Capital Group.