Commerz Real Launches Student Fund
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Commerz Real Capital-Management Company has launched a European fund for student and micro-apartments.
The Commerz Real Institutional Smart Living Europe Fund will be developed as a diversified portfolio of ten to 15 residential schemes in university cities and towns throughout Europe with a total value of approximately EUR 500 million. Half of the funds will be raised from professional and semi-professional investors with the fund planning a BVI return of 5% per annum.
Johannes Anschott, the Commerz Real board member responsible for institutional business, said: "Increasing numbers of students, the flexibilisation 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."
"In the medium term we see considerable potential for an independent product class within our institutional portfolio."
The fund will invest in established university cities and towns with attractive economic conditions, a high volume of commuters, and excess demand for student accommodation and micro-apartments.
When deciding on investments, Commerz Real will examine not only the operator and property, but also the possibility for third-party use and the micro-location.
Commerz Real Institutional Smart Living Europe Fund is the second specialist fund to be issued by Commerz Real in the student and micro-apartment sector. Its first fund was launched in 2016 and focused on opportunities in Germany.
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