Corestate raises €250m for new German opp fund

European real estate investment manager Corestate said on Thursday that it has raised €250 mln of equity for a new German opportunity fund, Corestate Opportunity Deutschland I.

The vehicle is expected to reach a volume of €600 mln over the course of the year thanks to purchases which have already been secured. Further acquisitions are also being considered, Corestate said, adding that the fund is targeting a final volume of €800 mln.

'The institutional investors of Opportunity Deutschland I are mainly pension funds. On the one hand, they appreciate the constant basic yield from rental income, but they are also benefiting from our proven asset management approach, which enables us to generate income for them from the value appreciation potential of the properties in the portfolio,' commented Corestate's CIO Thomas Landschreiber.

The fund generated a pro rata dividend yield of around 12% in the first short fiscal year.

So far, it has bought eight properties for around €180 mln.


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