Commerz Real Capital-Management Company has launched an €500m (£453m) open-ended fund for European student accommodation and micro-flats.
Commerz Real Institutional Smart Living Europe Fund will target 10 to 15 residential sites in university cities and towns across Europe with a target return of 5% pa.
It intends to raise €250m in equity capital from professional and semi-professional investors.
The German fund manager said the fund was driven by global demographic changes, with the number of students worldwide doubling since the start of the millennium.
It is the second fund Commerz Real has issued to target the sector, having previously launched the Commerz Real Institutional Smart Living Fund in 2016 to invest in German student and micro-flat assets.
Johannes Anschott, Commerz Real’s board member responsible for institutional business, said: “Increasing numbers of students, the increasingly flexible nature of the labour market and the rise in the number of single households are driving demand for micro-apartments across Europe.
“With the expansion to Europe we intend to offer our German professional and semi-professional investors the possibility to profit from the European outlook for this asset class, and in doing so to utilise our specialist know-how.”
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