Investment services company LRI Group joined hands with Germany's Wealthcore Investment Management GmbH to launch a real estate special fund with a target volume of up to €250 million.

Wealthcore Austria Living I will focus on core and core-plus properties in residential locations in the mid-price segment, with a focus on Vienna, and has a projected dividend yield of 4% per annum on equity with a 10-year term.

The fund has an initial portfolio volume of about €110 million and is aimed at pension funds and pension schemes in Germany and Austria.

The fund will initially be registered for distribution in Germany, Austria and Luxembourg.

LRI Invest SA will be the alternative investment fund manager, while Wealthcore will act as the investment adviser and asset manager.

LRI Group recently also launched a Germany-focused real estate private debt fund in partnership with Aggregate Debt Advisory GmbH, targeting €500 million.