German real estate developer Project Investment has finished raising institutional capital for its residential development fund, having secured 鈧�15m from a 鈥渕unicipal pension institution and an insurance company鈥�.
Six German institutional investors are invested in the unleveraged Vier Metropolen fund, said J眉rgen Uwira, managing director at Project Real Estate Trust.
The 鈧�200m of equity will be invested in six to seven project developments in Berlin, Hamburg, Frankfurt and Munich.
Part of the money placed in the Spezial-AIF (the latest German regulated institutional fund structure) has already been invested in four projects: Curtiusstra脽e 20-26 (Berlin Lichterfelde West), Heinrich-Heine Stra脽e 74-76 (Berlin Mitte), Uhlandstra脽e 103 (Berlin Charlottenburg) and Aspelohe 27 (Norderstedt/Hamburg) comprising a total of 260 housing units.
Project Investment said the fund plans to invest the remaining assets in 鈥渁nother three to four attractive real estate developments鈥�.
The risk parameters set for the fund require a diversification across 鈥渁 minimum of six objects at three locations in the four metropolitan regions鈥�.
Project Investment confirmed it planned to launch a successor fund later this year, which would also feature a 鈥減ure equity base, risk allocation to multiple object developments in various metropolitan areas, and focus on the construction of condominiums鈥�.
Uwira said the equity-only strategy was a trademark of Project Investment and was applied 鈥渢o all layers鈥�, including the invested funds as well as the property company, ensuring investors had senior status in the land register of the development.
