The Commerz Real open-ended real estate fund Hausinvest intends to invest about €2bn in residential real estate within the next five years by teaming up with Wertgrund Immobilien.
The fund will invest in existing properties and construction projects in German cities and university towns with a minimum volume of €50m and a focus on affordable properties, including publicly-subsidised housing.
The strategy could be extended to other European markets in the long term.
“Residential real estate is a very interesting asset class and excellently suited to further diversifying the portfolio of hausInvest,” said Andreas Muschter, CEO of Commerz Real.
“On the one hand our investors profit from the experience and market access of a successful specialist such as Wertgrund, on the other hand from the familiar high quality of our fund management.”
To date Hausinvest, which has assets under management of approximately €14.4bn, has primarily invested in commercial real estate, with residential property as an addition in individual properties.
“With the capital strength of Commerz Real and our expertise in the field of residential real estate we intend to develop a residential real estate portfolio throughout Germany and Europe in the medium to long term,” said Thomas Meyer, a member of the board of Wertgrund Immobilien.
“In this respect we set great store by partnerships with project developers and local councils above all. The first projects are already in the exclusive acquisition assessment phase.”