Corestate: New value-add fund expected to bring 16%
Corestate intends to invest €100mn to €150mn in value-add asset class properties for club deal customers. The investment company has therefore announced its issue of a closed-ended vehicle (Reserved Alternative Investment Fund) in Luxembourg. The investment horizon is five years, the IRR target is 16%. The fund intends to purchase retail, office, and residential properties in medium-sized European cities, with a focus on Germany. Its plan is to let, modernize, and reposition properties that have not been optimally managed. “Several properties are already undergoing an acquisition inspection; all have a high cash flow in combination with existing vacancies,” said CIO Thomas Landschreiber. The closing of the fund is planned for this year.
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