The Carlyle Group has announced the closing of its third European property fund at 2.2 billion euros ($3.4 billion), far above its initial fundraising target of 1.5 billion euros, and an indication of the continued strength of Germany property demand, The Daily Deal reported.

The closing comes as Carlyle’s real estate arm is expanding its efforts in several European countries to take advantage of weakening commercial property values. It has also recently opened an office in Madrid.

The new fund, Carlyle Europe Real Estate Partners III, has already committed 715 million euros to 10 assets in the Nordic countries, Germany, France and Spain, and has more in the pipeline. With leverage, the fund will be able to deploy about 9 billion euros.