Bouwfonds Investment Management has raised €110m for its European student housing fund.

The second closing of the fund more than doubles commitments.

A first raised €70m from founding investors.

Launched last year, the fund has so far bought four assets in Germany, the Netherlands and the UK.

Xavier Jongen, fund director, said its current portfolio of around 4,000 units was “performing very well, highlighting that student housing investments offer stable and secured cash flows”.

He said: “We can fulfil demand from institutional clients with our European-wide investment strategy and thus participate in growing the asset class further.”

The fund has a target volume of €200m-300m and a core risk profile. 

Bouwfonds said the fund, which offers an IRR of between 5.5% and 6.5%, has a maximum 40% leverage.

Meanwhile, London-based LJ Group has committed €100m to German student housing venture. 

LJ said the commitment to Cresco Capital Group’s German student housing venture, Cresco Urban Yurt, coincided with its first purchase, a €60m development in Berlin. 

The partnership bought the Frankfurter Tor in the German capital and will redevelop it into 552 apartments.

LJ, which also backs Queensgate Investments, Osprey Equity Partners and Hadley Property Group, said further acquisitions would be announced this quarter.