Union Investment and ZBI Zentral Boden Immobilien have plans to launch an open-end core-plus real estate fund, ZBI Union Wohnen Plus.
The target volume is €600 million ($734 million) in equity and €1 billion ($1.22 billion) in assets. The fund will invest in residential real estate in selected locations and growth regions in Germany.
ZBI Union Wohnen Plus has a term of at least 15 years and is planning average annual distributions of more than 4 percent. For investors, an IRR of at least 5 percent is forecast for the end of the term based on current income and sales proceeds.
