MPC Capital has joined forces with Universal-Investment to launch ESG Core Wohnimmobilien Deutschland, a new open-ended Special Alternative Investment Fund targeting green residential assets across Germany.
The vehicle, which has raised €80 mln of equity from institutional investors from the insurance sector at its first closing, is targeting a total investment volume of €300 mln. It will exclusively invest in real estate projects that consistently meet a comprehensive set of sustainability criteria. The first investment is expected to be made within the first quarter of 2021.
MPC Capital will be responsible for the fund’s asset management while Universal-Investment will be responsible for administration, risk management and reporting.
‘A significant increase in the number of households with simultaneously decreasing household sizes is currently offset by a significant undersupply of apartments - especially in Germany's future cities,’ said Ludwig Vogel, managing director Real Estate at MPC Capital. ‘At the same time, rising construction costs and land prices as well as the high capacity utilization of construction companies are leading to a persistent excess demand. With an investment fund consistently focused on sustainable, affordable housing, we are thus hitting the nerve of the times.’
