Commerz Real’s capital management business has launched an open-ended European fund to invest in student and micro-apartments.
Commerz Real Institutional Smart Living Europe Fund is to be developed as a diversified portfolio of ten to 15 residential complexes in university cities and towns throughout Europe with a total volume of around €500m. The fund expects an equity capital of at least €250m.
Johannes Anschott, the Commerz Real board member responsible for institutional business, said: “Increasing numbers of students, the flexibilisation of the labour market and the rise in the number of single households are driving demand for micro-apartments across Europe.”
Commerz Real Institutional Smart Living Europe Fund is now the second special fund to be issued by Commerz Real in the student and micro-apartment segment.
The predecessor product, Commerz Real Institutional Smart Living Fund, which was launched in 2016, focused on Germany and has been placed with equity capital of nearly €150m in the meantime.
“With the expansion to Europe we intend to offer our German professional and semi-professional investors the possibility to profit from the European outlook for this asset class, and in doing so to utilise our specialist know-how,” Anschott said.