Corestate Capital Holding S.A. (“CORESTATE”), a fully integrated real estate investment manager and co-investor based in Luxembourg, and Bayerische Versorgungskammer (BVK), one of the largest institutional pension funds in Germany with assets under management of more than €70bn, have launched the special fund "BVK-Residential Europe-Immobilienfonds Corestate" with a targeted volume of at least €500m.
The special fund primarily invests in micro apartments, especially in student housing properties in European university towns that have continued to display solid economic fundamentals, with a special focus on Germany and Austria. The first assets integrated into the fund are five student housing assets with a total of 1,836 units from CORESTATE's current portfolio, which have an aggregated annual net rental income of approximately €9.3m. Four assets are located in Germany and one asset is located in Austria.
André Heimrich, Member of the Management Board Investments, Bayerische Versorgungskammer: "For us, the newly launched micro-apartment fund offers the rare opportunity to invest in a functioning portfolio with an attractive return forecast and at the same time to involve a specialist in this segment for asset management. As a result, we are also expanding our investment spectrum with a future-oriented asset class."
Sascha Wilhelm, CEO, Corestate: "We were one of the first investors to enter the student housing market in Germany. Together with semi-institutional investors we developed a successful investment product and at the same time set up a fully functioning operating platform for this asset class. With BVK we have now won an institutional partner who is also convinced of the value of this product."
Corestate is responsible for the acquisition, investment and asset management as well as the operation of the real estate properties of the fund.
