Cording Real Estate Group plans to invest 拢400m (鈧�449m) in UK housing after raising 拢100m from German institutional investors.
The investment manager has launched the Cording UK Residential Investment Fund and hopes to raise an additional 拢150m of equity from continental European institutional investors.
It will use debt to enable it to invest 拢400m in the UK鈥檚 private-rented sector (PRS) over the next four years.
The fund is designed to hold a diversified portfolio of assets over the long term, generating a net income return of more than 5% per annum.
The fund can enter into forward-commitment and forward-funding agreements. It will also have the ability to acquire completed and fully-leased PRS projects.
Cording said it had a strong pipeline of investment opportunities and expects to transact on the first two deals shortly.
The company said it used 鈥渁 unique and comprehensive research approach鈥�, focusing on the lower-to-mid end of the market.
It has identified a number of regional cities and Greater London locations where demand for rented accommodation is forecast to be persisently strong and supply will remain constrained.
John Partridge, chairman of Cording, said: 鈥淲e 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.鈥�
The open-ended SICAV fund is domiciled in Luxembourg.
