Swiss Life Asset Managers has acquired a 533-unit German residential portfolio for newly launched European open-ended mutual property fund.

The manager said its German investment platform Swiss Life KVG launched the Swiss Life European Living fund last month, with the help of German bank Deka, to invest in residential properties in European metropolitan regions.

Swiss Life said the fund has acquired the housing stock in Duisburg, Düsseldorf, Frankfurt, Cologne and Wuppertal for an undisclosed sum.

Initially, the fund intends to build up a target real estate portfolio consisting of residential properties in the mid-price segment. 

It will also target properties geared towards different user groups such as students, young professionals or commuters, the manager said.

Swiss Life European Living is the second open-ended mutual property fund Swiss Life KVG has launched in the space of three years.

At the end of 2016, it launched its first mutual property fund, Living and Working, which reached a volume of more than €500m within two and a half years.

Tina Störmer, CEO of Swiss Life Asset Managers in Germany, said the European Living fund is the company’s first pan-European residential property fund for private customers.

”Its aim is to generate stable income on a long-term basis and manage opportunities and risks responsibly.

“This new product therefore also follows our company’s guiding theme of independent living.”

Christine Bernhofer, COO of Swiss Life Asset Managers in Germany and CEO of Swiss Life KVG, said: “The cooperation with Deka for marketing European Living represents a win for both sides: We are combining the real estate and fund expertise of Swiss Life Asset Managers with Deka’s strong product expertise and close-knit sales network.

”Investors in the fund also benefit from excellent access to properties via Swiss Life Asset Managers’ local real estate units in the key European property markets.”