Luxembourg-based investment manager Corestate has launched a €300 mln real estate fund focusing on newbuild residential property in Germany.
The open-ended Special-AIF Corestate Residential Germany III fund (CRG III) follows the full placement of its predecessor, CRG II, in January.
The first acquisition for the fund has already been made, a new development in Dresden at the intersection of An der Elbaue and Flösserstrasse for a total investment volume of €49 mln. The residential complex will comprise 179 flats, 3 commercial units and 145 underground parking spaces on the north side of the Elbe.
The project is scheduled for completion in the second quarter of 2019 and was acquired from Townscape One Development.
The fund's investment focus will be on newly build residential properties in Germany's major cities and seeks to generate ongoing distributions of at least 4% per annum.
Thomas Landschreiber, co-founder and CIO of Corestate, said: 'The demand for high-quality residential space remains strong. These assets thus offer attractive potential returns to investors.'