The Catella European Residential III fund (CER III) has acquired a 177-unit fully rented student housing asset in Leipzig, in the eastern German state of Saxony for around €23m from the Family Office Drengenberg.
The acquisition of the 3,520sqm asset takes CER III’s total assets under management to €800m. The fund is managed by Berlin-based Catella Residential Investment Management (CRIM).
The asset is located in a lively diverse neighbourhood populated by students, artists and sub-cultures with numerous cafes, bars, restaurants, and small stores and is close to one of Leipzig’s universities, CRIM said.
Michael Keune, managing director at CRIM, said: “The latest investment in Leipzig by our CER III fund fully meets the environmental standards we demand from the assets in the portfolio for our investors.
“The acquisition also addresses another critical societal issue, the severe shortage of affordable and modern quality accommodation for students in major German and European cities when young people are struggling to take the first steps in their independent adult lives.”
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