German real estate developer Project Investment has finished raising institutional capital for its residential development fund, having secured €15m from a “municipal pension institution and an insurance company”.

Six German institutional investors are invested in the unleveraged Vier Metropolen fund, said Jürgen Uwira, managing director at Project Real Estate Trust.

The €200m of equity will be invested in six to seven project developments in Berlin, Hamburg, Frankfurt and Munich.

Part of the money placed in the Spezial-AIF (the latest German regulated institutional fund structure) has already been invested in four projects: Curtiusstraße 20-26 (Berlin Lichterfelde West), Heinrich-Heine Straße 74-76 (Berlin Mitte), Uhlandstraße 103 (Berlin Charlottenburg) and Aspelohe 27 (Norderstedt/Hamburg) comprising a total of 260 housing units.

Project Investment said the fund plans to invest the remaining assets in “another three to four attractive real estate developments”.

The risk parameters set for the fund require a diversification across “a minimum of six objects at three locations in the four metropolitan regions”.

Project Investment confirmed it planned to launch a successor fund later this year, which would also feature a “pure equity base, risk allocation to multiple object developments in various metropolitan areas, and focus on the construction of condominiums”.

Uwira said the equity-only strategy was a trademark of Project Investment and was applied “to all layers”, including the invested funds as well as the property company, ensuring investors had senior status in the land register of the development.