Deutsche Investment and ZBI launch second residential fund

The Hamburg-based Spezialfonds initiator Deutsche Investment and Erlangen-based ZBI Zentral Boden Immobilien Gruppe are teaming up again to launch a second German residential fund. Their first joint fund, Deutsche Investment - ZBI Wohnen I, had invested €160m by the end of July 2014, mainly in Berlin, with the planned volume of €180 shortly to be fully invested.

The new fund - Deutsche Investment - ZBI Wohnen II - will have a full target volume of €200m with 50% leverage and aims to yield 5.5% IRR over a 10-year period, for a minimum investment of €10m. Again, Berlin is the principal destination, but the fund will this time include other northern German cities, particularly Hamburg, Hanover and Bremen.

According to Goesta Ritschewald, managing partner at Deutsche Investment, about 25% of the new fund will be invested in development projects including forward deals. DI will handle the fund management, while ZBI will again be responsible for operative aspects, handling asset and property management. It has several offices in northern Germany and is specialised in residential property, having issued housing funds targeted at private and institutional investors since 20012. It currently has more than €2bn of assets under management, with more than 29,500 residential units.

Deutsche Investment is a subsidiary of the DSR Deutsche Seereederei Group based in Rostock, originally a maritime holding company now with tourism, property, financial services and healthcare interests.