Corestate Group has announced the second closing of a new equity raise on behalf of its German Commercial Fund, securing additional investment capacity of about EUR 120 mln.

Launched in December 2006, the fund primarily invests in income producing commercial properties in large urban areas of western Germany which display strong economic fundamentals, focussing on small-to-medium sized portfolios. The additional equity was raised from new investors.

The current uncommitted firepower of the fund is about EUR 160 mln. The fund intends to invest in special situations, focussing on high-quality assets with certain value add potential based on active asset and property management, as illustrated by its recent Hanover acquisition. In addition, the fund is targeting selected retail opportunities in Germany, Austria and Switzerland.

Corestate is a specialist private equity investor based in Zug, Switzerland, with partner offices in Frankfurt, London and Luxembourg.