Catella Investment Management has acquired a residential asset in Bamberg, northern Bavaria, from Instone Real Estate for an individual mandate.
The 35 new-build apartments will be built in two buildings comprising 2,370sqm of residential space and 583sqm of commercial space on the ground floors.
The residential units are divided into 17 two-room and 18 three-room apartments. Planning permission has already been granted and construction is scheduled to start at the beginning of 2025. The assets will be part of ‘Lagarde 8’ in the urban district of Lagarde-Campus, which is being developed on a 22.5-hectare site of a former barracks in the east of Bamberg. A total of 1,000 new apartments are being built, along with space for commerce, retail and culture.
Michael Keune, managing director at CIM, said: “Despite the continued challenges of the market environment, we see selective opportunities for residential investments in Germany. With the two residential buildings in Bamberg, we were able to secure two attractive assets for our mandate in a commercially strong environment. The buildings also comply with the ESG requirements of our investors.”
Andreas Zeitler, managing director of Instone Real Estate Development, said: “In developing this project, we are making an important contribution to the creation of urgently needed living space. As Instone, we are also taking responsibility for the development of 57 owner-occupied apartments in the immediate vicinity of the 35 rental apartments. The result is a neighbourhood that creates value and quality of life in equal measure. We are looking forward to a successful working relationship with Catella Investment Management.”
Catella operates across 12 countries with €13bn of assets under management.
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