US private equity firm KKR is moving into the German commercial real estate market, partnering with Deutsche Immobilien Chancen Group in a new vehicle.

The German Estate Group (GEG) will be held by the two companies and target the office and retail sectors.

The company will be KKR’s sole route into German real estate, the US firm said.

Ralph Rosenberg, global head of KKR Real Estate, said the platform would give the company greater access to investments in Germany across the risk spectrum.

Based in Frankfurt, GEG will invest in core and opportunistic real estate, including developments.

Ulrich Höller – chief executive at DIC Asset, in which Deutsche Immobilien Chancen has a 33% stake – has been appointed head of the new company.

GEG will invest its own capital as well as third-party money.

Deutsche Immobilien Chancen, backed by investment companies and insurance firms, will transfer its operational business to GEG, which includes 40 staff.

Höller said the company was confident that, with KKR as a partner, it could build a “leading position” for GEG in its relevant market segments.

KKR will be represented on GEG’s supervisory board by Johannes Huth, head of KKR’s Europe, Africa and Middle East operation, and Rosenberg.