Arbireo Capital and Intreal launch €250m German resi real estate fund

Arbireo Capital and Intreal are launching a €250 mln open-ended, Article 8 German fund that will invest in a diversified portfolio of new and nearly-new buildings.

Arbireo Special AIF: Wohnen Deutschland I will primarily invest in residential properties located in growing suburbs of major German cities, mid-sized cities (100,000+ residents), and university towns (40,000+ residents), excluding the top 7 largest markets. The portfolio will consist of at least 60% Core and 30% Core+ assets.
The fund will target a diverse mix of rent-controlled and market-rate housing, utilizing available subsidies and incorporating social and inclusive housing options.
Sascha Hertach, managing director of Arbireo Residential Invest, said: "Having been involved in the residential asset class for many years through club deals and individual mandates, we are proud to now be able to launch a widely accessible special AIF for the first time. Based on our market experience and our proven network, we have developed a fund strategy that is ideally suited to the times and the needs of our institutional target group. The goal is attractive returns in the defensive German residential segment." 
Martin Leinemann, CEO of Arbireo Capital, added: "Housing is a fungible asset class that fulfills a basic social need. Therefore, we have recently seen significant demand among German institutional investors for broadly diversified residential real estate products that take sustainability requirements into account. We are entering precisely this segment with our special AIF."