Invesco Real Estate has launched an open-ended fund investing in pan-European residential properties.
Invesco Real Estate European Living Fund has seed equity capital of €140 million and a roughly €190 million investment capacity including debt.
Three German institutional investors provided the capital and further closings are planned over the next six months. Invesco’s fund is targeting an initial €500 million gross asset value over the next two to three years.
The fund targets 4% p.a. gross income and 5.5% to 7.5% gross total return,
“European residential investments have shown outperformance compared with other asset classes in the long-run, whilst showing less volatility and they have also proven to be especially crisis-resistant with a high degree of income stability,” said William Ertz, a senior fund management director at Invesco.
The fund will have some focus on sustainability, such as high energy efficiency.
“A fundamental focus on green ratings, for instance, should increase attractiveness to tenants,” said Ertz.
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