CORESTATE closes German Residential Fund
- Fund attracts almost EUR 486 million (USD 766 million) of equity from investors
- Target investment volume of EUR 2.0 billion (USD 3.2 billion) despite subprime crisis
CORESTATE Capital AG has completed the capital raising for its real estate private equity fund, CORESTATE German Residential Limited, as planned. The fund attracted EUR 486 million (USD 766 million) from institutional investors. This was announced by the Swiss-based investment house today.
The fund invests directly and indirectly in German residential real estate. The total target investment volume is around EUR 2.0 billion (USD 3.2 billion), of which approximately 50% has been acquired. The planned term of the fund ends in 2014. The fund's investors are primarily large, globally active institutional investors, such as ING of the Netherlands, Morley of the UK and Goodman of Australia.
"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. This is especially the case because - despite the subprime crisis - many of our investors very quickly increased their investment allocations to the fund, facilitating our successful capital raise", says CORESTATE chairman Ralph Winter.
Winter announced that a further EUR 600 million (USD 946 million) is to be invested in German residential properties this year. "We are continuing our tried-and-tested strategy of acquiring residential portfolios throughout Germany for between EUR 5-50 million (USD 7.9-79 million) via our dedicated, local sourcing platform. This enables us to acquire assets predominantly offmarket, and avoid often expensive bidding processes."
CITI acted as placement agent to CORESTATE in this transaction.
CORESTATE Capital AG
CORESTATE Capital AG is a private equity investor and asset manager seated in Zurich. The company commits capital in various real estate asset classes and in corporate shares. Principally, the company pursues a small and midcup strategy in all of its investment activities. Investors include international, institutional players such as ING, Lloyds TSB, CBRE Investors, and Schroders. CORESTATE holds a majority interest in the Dr. Ochel Group, Bochum, a company specialising in exit strategies in the housing industry. Moreover, CORESTATE holds a participating interest in Alta Fides AG, Stuttgart, a company that - in addition to retailing high-end residential real estate - specialises in the development of student housing estates via the "Campus Real Estate" business area. GREAT, Frankfurt, advises CORESTATE on all its real estate investments and disinvestments and the associated due diligence processes.