Patrizia has launched an open-ended pan-European residential fund with €650m (£556m) of seed assets.
The Patrizia Living Cities Residential fund is expected to grow to more than €1bn of assets next year.
It has invested in 12 European cities so far.
A number of existing and new global institutional investors from Europe and Asia have committed to the fund, with further parties in advanced due diligence.
The fund, which will have a 35% loan-to-value ratio, will be targeting Europe’s main metropolitan areas. It draws on Patrizia’s proprietary European Cities Ranking model to focus on long term buy-to-hold strategies, which will include 20% of the fund being invested into the “living” residential category, including co-living, retirement and student housing.
Sebastian Dietert, fund manager, living cities at Patrizia, said: “The composition of the current Living Cities portfolio reflects the essence of this fund, namely to provide stable income with a long-term capital growth prospects in strong micro locations. In addition, we have a pipeline of approximately €1.5bn in additional acquisition targets thanks to our strong local expertise.”
The fund will target the following cities:
- Munich, Germany
- Berlin, Germany
- Dresden, Germany
- Dusseldorf, Germany
- Frankfurt, Germany
- Hamburg, Germany
- Stuttgart, Germany
- Potsdam, Germany
- Glienecke, Germany
- Copenhagen, Denmark
- Amsterdam, The Netherlands
- Rotterdam, The Netherlands
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