Cresco Capital Group’s German student housing venture, Cresco Urban Yurt, is investing €83m ($93.2m) in a Berlin apartment scheme.
A 6,552 sqm property in Brunnenstrasse near Berlin’s Mauerpark will be developed by the venture, backed by London-based LJ Partnership.
LJ committed €100m to the venture in 2014.
The commitment coincided with the company’s first purchase, a €60m development in Berlin.
The partnership bought the Frankfurter Tor in the German capital for redevelopment into 552 apartments.
The latest investment will include 700 micro apartments, with completion expected in 2017.
Planning permission has been obtained and construction work started.
Cresco Urban Yurt will manage the asset once developed.
Sparkasse Berlin financed the project.
Further acquisitions and projects will be announced in 2016, Cresco Capital said.
Co-managing partner of the group, Daniel Schuldig, said: “We see significant potential for the development of further micro apartment projects in Germany as we work towards securing a position as Germany’s leading developer in this space over the coming years.”
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