German listed company Patrizia Immobilien is partnering with an unnamed pension scheme to launch a residential real estate fund. The fund will have an initial volume of EUR 100 mln.

The Patrizia Wohnmodul I vehicle invests in existing properties and project developments. The has already made its first purchase, Patrizia said, without disclosing further details.

'With our new type of fund concept we are broadening the investment horizon in two respects,' said CEO Wolfgang Egger. 'Firstly, project developments and asset repositioning portfolios can also be bought. Secondly, apartments can be sold during the investment phase, either by means of block or individual sales. The co-investor thus has the advantage of being able to purchase real estate that promises higher anticipated returns.'

Over its life time the fund will provide a total return of about 50%. 'The risk-return-ratio is very attractive for a stable asset class such as residential real estate,' he added.