Corestate raises nearly €490m for German residential fund

The Swiss-based private equity real estate firm founded by former Cerberus head in Germany, Ralph Winter, expects to invest in another €600 million of property this year.

Corestate Capital has closed CORESTATE German Residential Limited on €486 million ($766 million) of equity, giving it a target investment volume of €2 billion.

The Zurich firm has committed around 50 percent of the total capacity to date, it said in a statement, and expects to invest €600 million this year.

“We are continuing our tried-and-tested strategy of acquiring residential portfolios throughout Germany for between €5-50 million,” said Corestate founder Ralph Winter.

The residential fund is expected to terminate in 2014. Investors include Dutch bank ING, UK-based Morley and Australia-based Goodman.

“Most of our investors are acknowledged real estate specialists who on the whole invest directly in property assets themselves which makes us all the more appreciative of the confidence placed in Corestate,” added Winter. “This is especially the case because despite the subprime crisis many of our investors very quickly increased their investment allocations to the fund, facilitating our successful capital raise.”

The firm was started by Winter when he left Cerberus in March 2006 as head of real estate operations in Germany. It has also been busy raising a commercial real estate fund.