The Swiss bank’s asset management arm is teaming up with real estate investor MARK to acquire and manage residential properties in city centers. The DOMA venture seeks to raise an initial 350 million euros ($414 million), said a person familiar with the matter, who asked not to be identified because the funding details are private. The partnership will first target a portfolio of single homes and small apartments across Germany and the Netherlands, where it already manages about 700 homes. DOMA eventually aims to build a Europe-wide portfolio worth around 1 billion euros.
Institutional investors are cashing in on a chronic housing shortage across Europe that’s boosting demand for rental housing among young people and families. Lloyds Banking Group Plc plans to become one of the largest private residential landlords in the U.K., while Australian bank Macquarie Group Ltd. is planning to invest more than 1 billion pounds ($1.4 billion) into rental housing there. M&G Real Estate is also expanding its presence in the market, making its first deal in Germany’s private rented sector by financing apartment construction near Frankfurt. Credit Suisse Asset Management has had a long-standing experience investing in the residential sector in Europe, both directly as well as indirectly through a multi-manager approach.