Cording Real Estate Group has launched €448.6m (£400m) Cording UK Residential Investment Fund that will invest in the private rented sector (PRS) on behalf of Continental European investors.
The fund has been launched with equity commitments of €112.2m (£100m) from German institutional investors. The company is expecting to raise an additional €168.2m (£150m) of equity commitments from Continental European institutional investors. Using leverage, the fund will have €448.6m (£400m) to create a diversified portfolio of PRS assets in the coming four years, delivering sustainable income distributions over a long-term holding period. The fund aims to deliver to its investors a net income return of more than 5% per annum. The fund has a strong pipeline of investment opportunities and expects to transact on its first two deals shortly.
John Partridge, Chairman of Cording, said: “We are delighted with the support shown by our investors towards our PRS team and our vertically-integrated approach, providing in-house development management, portfolio management, asset management, leasing and property management.”
Cording was advised by Clifford Chance in Luxembourg and Frankfurt.
