London-based Zaga Capital Partners has secured approximately €210 million in commitments for its debut opportunistic fund targeting German residential for-rent assets, PERE can reveal. The manager has set a hard-cap of €400 million for Zaga German Real Asset Opportunities II, with a final close targeted by the end of Q2 2026. The majority of commitments came from European and Asian investors including pension funds, family offices, and asset managers.

The fund represents the institutionalization of Zaga's German residential platform, which was initially built through a joint venture with Maltese family office Attegia Holding. That JV deployed €290 million into a portfolio of approximately 14,000 multifamily rental homes valued at €1.4 billion. Zaga targets a 20 percent net IRR using leverage up to 55 percent loan-to-value from lenders including German banks LBBW and Helaba.

Co-founder Marco Zarges said the first close demonstrates Zaga's readiness to scale beyond its initial JV structure. The fund will invest in the same master holding company as the seed portfolio, gaining immediate access to the 14,000-unit platform. Zaga expects average ticket sizes of €30 million and plans to deploy €60-80 million from the first close within six weeks, capitalizing on what Zarges describes as entry prices not seen since the global financial crisis.