The fifth land development fund of German real estate manager DLE Group has attracted €47 mln in subscriptions, marking a strong start to Q4 2023.
The Land Development Fund V targets the top seven cities in Germany and caters specifically to institutional investors seeking to diversify their property portfolios with a focus on housing development.
This investment strategy aligns with the pressing need to address the housing shortage in these major metropolitan areas.
According to the Federal Association of German Housing and Real Estate Companies, Germany currently faces a shortfall of around one million apartments.
Yolanda Schmidtke, CEO and co-founder of DLE Group AG, said: ‘Solving the housing crisis is the central task that we must tackle together and decisively. Despite the challenging market phase, we were able to convince our investors to invest in the fifth land development fund, which is aimed at new residential construction in the most sought-after regions of Germany.’
DLE Group currently manages eight funds, including five dedicated to land development that are fully equity-funded. Two of them target properties in Berlin, two focus on prime regions across Germany, and one specializes in promising locations in Poland. ESG criteria play a critical role in the company's investment process and subsequent building permit applications.
DLE continues to actively acquire large-scale properties in Germany, with a minimum investment threshold of €10 mln. Beyond land development, DLE has also launched additional investment vehicles, including the DLE Sustainable Mezzanine Fund, the DLE Senior Living Fund, and the DLE Logistics Fund.