German property company IVG has raised €910m (£781m) for the launch of its IVG Caverns Fund.

The raise comes two months after the company decided to sell its 70 strong caverns business – underground storage facilities for gas and crude oil – into a fund for €1.7bn (£1.45bn).

The fund has bought an initial 40 operating caverns from IVG. The next 30 caverns are under development but have long-term tenancy agreements in place. These will be transferred into the fund upon completion.

The company said in a statement today: ‘The caverns have been let long-term to customers with top credit ratings. For this reason, IVG will not only continue to develop and operate the caverns but will also continue to participate in the long-term potential of the 70 caverns with €50m as a co-investor of the fund.’