Corestate Capital, the real estate investment manager and co-investor, has teamed up with the €70 bn German pension fund BVK to launch a €500 mln European fund targeting micro-apartments.
BVK-Residential Europe-Immobilienfonds Corestate is structured as a special fund for institutional investors (spezialfonds) that will primarily invest in micro apartments, especially in student housing in European university towns. The fund has a primary focus on the German and Austrian markets.
The first assets integrated into the fund are five student housing assets with a total of 1,836 units from Corestate's current portfolio, which have an aggregated annual net rental income of €9.3 mln. Four assets are located in Germany and one asset is located in Austria.
André Heimrich, member of the management board for investments at BVK, said: 'For us, the newly launched micro-apartment fund offers the rare opportunity to invest in a functioning portfolio with an attractive return forecast and at the same time to involve a specialist in this segment for asset management. As a result, we are also expanding our investment spectrum with a future-oriented asset class.'
Corestate is responsible for the acquisition, investment and asset management as well as the operation of the real estate properties of the fund.
Corestate CEO Sascha Wilhelm said Corestate was one of the first investors to enter the student housing market in Germany. 'Together with semi-institutional investors we developed a successful investment product and at the same time set up a fully functioning operating platform for this asset class. With BVK we have now won an institutional partner who is also convinced of the value of this product.'
