Cording Real Estate Group Ltd. launched a £400 million open-ended fund targeting the private rented sector in the U.K.

The Cording UK Residential Investment Fund has received equity commitments of £100 million from German institutional investors and is expecting £150 million more from institutional investors from continental Europe.

Cording also plans to use leverage to raise the £400 million fund it will invest in the next four years, with a target net income return of over 5% per year.

The fund is open to entering forward commitment and forward funding agreements and may also acquire fully leased completed assets in the lower-to-mid markets of the private rented sector, according to a release.