German pension fund Nordrheinische Ärzteversorgung has partnered with an Invesco Real Estate fund to invest €150m in an Italian residential project.

The doctors’ pension fund, as a separate account client of Invesco, has formed a joint venture with the manager’s open-ended European Living Fund to invest in the 53,000sqm SeiMilano site which will be used for the construction of 600 apartments spread over 11 buildings. 

Invesco said the urban regeneration project is being developed by Borio Mangiarotti and Värde Partner, the construction company will be Borio Mangiarotti. The project is expected to complete in 2024.

The development is part of the wider 300,000sqm SeiMilano project spread over 16 hectares.

William Ertz, senior fund management director at Invesco Real Estate, said: “Demand for residential apartments in Milan is increasing. While the market is still developing, there are currently almost no institutional quality assets offering modern, well-designed and quality-built apartments.

“This acquisition in SeiMilano sets an excellent precedent for our pan-European Living strategy and, looking ahead, we will build on this with similarly attractive assets.”

Invesco launched its European Living Fund in November last year, targeting a 4% per annum gross income return and 5.5% to 7.5% gross total return. The fund has raised over €260m in equity which with debt provides €400m of investment capacity.

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