Munich-headquartered Real IS has launched a new open-ended residential property fund, Modern Living, and has begun the placing process with a planned investment volume of €800 million.
The aim is to build a diversified residential real estate portfolio with an average annual distribution of 2.75% to 3.25% over ten years.
The fund, a specialised institutional AIF, will focus on residential property for particular life cycle stages and its environmental characteristics have been defined in line with Article 8 of the EU Sustainable Finance Disclosure Regulation.
“During the pandemic, residential property has again proved the stability of its value. The asset class offers an attractive opportunity for our investors,” said Real IS’s head of client relations and capital funding Tobias Kotz said. “Our investment strategy also capitalises on the megatrend of shifting demographics and the resulting shortfall in supply on the market,” he added.
Modern Living will target existing properties, new properties and those under construction, in the senior living, traditional residential and micro living use categories Kotz explained.
“We will invest in senior housing, care homes and other similar forms of assisted living facilities, but also in micro-apartments, student accommodation, serviced apartments and traditional apartment buildings and housing complexes.”
Although the focus will be on Germany, opportunities in other countries within the euro area are to be considered too, Real IS stated.