Credit Suisse Group AG is partnering with investment firm MARK on a European rental investment venture called DOMA.
The partners aim to raise an initial 350 million euros for the fund, the equivalent of $414 million, according to Bloomberg.
DOMA is targeting single-family homes and small multifamily buildings and wants to eventually acquire a portfolio worth 1 billion euro. The platform was seeded with 700 units across Europe.
DOMA is being led by MARK Chief Investment Officer Josip Kardun, who said the rental business “has demonstrated its resilience throughout the pandemic.”
“There is a major untapped opportunity in privately owned smaller residential assets in prime urban locations,” he said.
Demand for rentals is strong in many parts of Europe because of a shortage of housing, prompting other large firms to get in on the action.
M&G Real Estate announced this week it was expanding into Germany’s private rental sector with a development project outside Frankfurt.
Lloyds Banking Group wants to become one of the United Kingdom’s largest landlords and Australian bank Macquarie Group aims to buy $1.4 billion worth of U.K. rentals.
U.S. firms Blackstone and Greystar, meanwhile, have placed huge bets on the U.K. student housing sector.
[Bloomberg] — Dennis Lynch