Commerz Real has issued an infrastructure fund through its Luxembourg-based company CR Fund Management S.à r.l.. With a term of around 15 years, CR Institutional Infrastructure Multi-Asset Fund II intends to invest in at least six to eight infrastructure projects in the energy generation and energy networks sectors, as well as other energy infrastructure.
To this end Commerz Real intends to acquire approximately EUR500 million (US$577.75 million) through institutional investors. These are to receive an internal rate of return (IRR) of six to eight per cent per annum.
As much as 20% may be invested in the transport/mobility sector and 20% in other infrastructure projects. The geographical focus is to be placed on Europe, though as much as 40% of the investments may also be allocated outside of the European Economic Area.
The objective is to issue at least 90% of the fund's capital in euro or with currency hedging. The investment strategy is geared to core and core-plus, but may be supplemented with selective opportunist shareholdings.