Shore Capital has raised €135m ($145.9m) in a first close for its Brandenburg Realty German residential fund.
The manager said it raised the capital from institutional investors and family offices in the US.
The capital includes a co-investment commitment of up to €12.5m from Puma Brandenburg.
Shore Capital said Brandenburg Realty was expected to make a further close within three months, taking maximum commitments to €250m.
Howard Shore, executive chairman, said the new vehicle would look to buy well-located, high-quality residential buildings in major German cities.
Shore Capital has made a €12.5m commitment to Brandenburg Realty, which has a focus on Berlin.
The firm said it previously advised on the acquisition and asset management of a German real estate portfolio that includes 3,000 apartments in Berlin, as well as commercial properties, including the 306-room, five-star Hyatt Hotel in Cologne and 45 out-of-town retail units let to Lidl in various locations across Germany.