Corestate raises €250m for German opportunity fund

European real estate investment manager Corestate has raised €250 million ($277 million) of equity for a new German opportunity fund, Corestate Opportunity Deutschland I.

The fund volume is expected to rise to nearly €600 million ($664 million) over the course of the year as a result of property purchases that have already been secured. Further acquisitions are currently being considered. The fund is therefore well on its way to achieving its ultimate target volume of €800 million ($885 million).

“The Opportunity Deutschland I is developing extremely well with a pro rata dividend yield of around 12 percent in the first short fiscal year. The institutional investors of Opportunity Deutschland I are mainly pension funds. On the one hand, they appreciate the constant basic yield from rental income, but they are also benefiting from our proven asset management approach, which enables us to generate income for them from the value appreciation potential of the proper