Capital Bay is in talks to buy two additional properties for its new German micro-living fund, the manager said today as it announced the acquisition of an apartment building in Munich.
The Berlin-based manager said it bought the asset from a joint venture between SEG Development and Bull Capital for “a sum in mid-double-digit million euro range”.
The new building comprises 331 serviced apartments with living space of between 18 and 33sqm.
Capital Bay’s new micro-living fund invests in student residences, serviced apartments and co-living properties all over Germany, and includes both residential and commercial concepts. The target volume is around €300m.
Christoph Geißler, CIO of Capital Bay, said: “We have taken a first major step in the growing micro-living market and will build on this in the long term.
“Two more properties in similarly attractive locations are currently in the purchase phase.”
CB Micro Living will take over operations of the property on a long-term mandate and will begin letting the apartments in September this year.
Alexander Kersting, managing partner and director of CB Micro Living, said: “Demand for serviced apartments is extremely high in Munich – due to a short supply of small yet high-end homes. We, therefore, expect occupancy to be continuously high.”