Investment manager Corestate Capital Holding has announced the launch of an investment programme focused on value-add retail, office and residential buildings in mid-sized European cities for its club deal clients.
According to the company, the investment horizon is five years and the target IRR is 16%.
The programme is expected to have an estimated volume pf between €100 mln and €150 mln and will be structured as a Luxembourg-domiciled closed-end Reserved Alternative Investment Fund (RAIF).
The programme will target target private investors, family offices and institutional investors with a focus on the German market. It will also keep a close eye on individual properties in Spain, the Netherlands, Poland and the UK, the company said.
‘We have identified not only more investor interest in the value-add segment, but also a host of asset opportunities for a manage-to-core strategy in mid-sized European cities,’ explained Thomas Landschreiber, co-founder and chief investment officer of Corestate.
‘A lot of properties need refurbishment and modernisation in order to meet changing customer and tenant needs. The European value-add programmr will benefit from these developments,’ he added.
Several seed assets are already in the pipeline. The closing of the fund is expected later this year, when the programme will encompass secured assets as well as a stable project pipeline, Corestate said.
‘With the European value-add programme, we will continue our strong club deal track record of delivering double-digit returns and seizing on short-term investment opportunities," commented Boris Pauli, Corestate’s managing director client relations.
‘The short maturity, transparent structure and low minimum investment support the attractive investment case for multi-family offices and private banks in particular.’