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Corestate Capital closes German Residential fund with EUR486m

Zurich-based Corestate Capital has completed the capital raising for its real estate private equity fund, Corestate German Residential, attracting EUR486m from institutions for direct and

Zurich-based Corestate Capital has completed the capital raising for its real estate private equity fund, Corestate German Residential, attracting EUR486m from institutions for direct and indirect investment in German residential real estate.

The total target investment volume is around EUR2bn, of which around 50 per cent has been acquired, and the planned term of the fund ends in 2014. The investors are primarily large globally active institutional investors such as ING of the Netherlands, the UK’s Morley and Australia’s Goodman.

‘Most of our investors are acknowledged real estate specialists who on the whole invest directly in property assets themselves – which makes us all the more appreciative of the confidence placed in Corestate as a fund and property asset manager,’ says chairman Ralph Winter.

‘This is especially the case because, despite the sub-prime crisis, many of our investors very quickly increased their investment allocations to the fund, facilitating our successful capital raise.’

According to Winter, a further EUR600m will be invested in German residential properties this year. ‘We are continuing our tried-and-tested strategy of acquiring residential portfolios throughout Germany for between EUR5m and EUR50m via our dedicated local sourcing platform,’ he says. ‘This enables us to acquire assets predominantly off-market, and avoid often expensive bidding processes.’

Corestate Capital is a private equity investor and asset manager that commits capital in various real estate asset classes and corporate shares, primarily pursuing a small- and mid-cup strategy in all of its investment activities. Investors include international institutional players such as ING, Lloyds TSB, CB Richard Ellis Investors and Schroders.

Corestate holds a majority interest in the Dr Ochel Group in Bochum, a firm specialising in exit strategies in the housing industry, and a stake in Stuttgart-based Alta Fides, which retails high-end residential real estate and specialises in the development of student housing. Frankfurt-based Great advises Corestate on all its real estate investments and divestments and the associated due diligence processes.

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