Corestate Capital Holding SA has set up a five-year, value-add investment strategy, with an investment volume goal of up to €150 million, to target properties with a high yield potential across medium-sized cities in Europe.

On behalf of its club deal clients such as private investors, family offices and institutional parties, Corestate will invest in undermanaged office, residential and retail assets in Germany, as well as the Netherlands, Poland, Spain and the U.K., according to a release.

The investment vehicle, structured as a Luxembourg-domiciled closed-end reserved alternative investment fund, has a number of seed properties in the pipeline and will aim for an internal rate of return of 16%.

The fund is expected to close during the late part of 2018.