Union Investment pulled in €620 million in the initial subscription phase of its first residential fund, IPE Real Estate reported.
UniImmo Wohnen ZBI is billed as Germany's biggest open-ended residential fund. It was launched earlier in 2017 by Union Investment and ZBI Zentral Boden Immobilien.
The fund targets properties across Germany that "offer affordable living space for the wider population, with medium to high amenity value," the publication noted, citing Union.
IPE noted that €460 million of assets have already been secured by ZBI. More than 50% of such assets, which were sold by a group of U.S. and U.K. investors, have been injected into the fund.
The assets already transferred to the fund include a €132 million, 260-property portfolio containing some 2,500 residential units, as well as about 70% of another 150-property portfolio with a roughly €113 million pro rata value and about 2,500 residential and commercial units.
Union and ZBI aim to make a capital investment to bring the portfolio's occupancy to 100% and boost its value, according to the report.