Commerz Real has acquired a residential complex in Munich for its open-ended real estate fund Hausinvest.
Commerz Real and Wertgrund Immobilien said they have bought the complex of eight apartment blocks in the new residential project Nockherberg NOC 2.4 in Munich’s Regerstrasse from Bayerische Hausbau for an undisclosed sum.
Wertgrund had initiated the transaction and will assume responsibility for the leasing and property management, the companies said in a joint statement.
The asset is made up of 114 apartments and 86 underground car parking spaces, as well as two smaller commercial units.
Construction is expected to commence in the fourth quarter of 2019 and is expected to be completed in mid-2022.
Thomas Meyer, the chairman of the board of management of Wertgrund, said: “This transaction shows once again that the construction of subsidised housing can also be attractive for investors with a long-term orientation.”
Mario Schüttauf, a fund manager at Hausinvest, said: “With the Nockherberg residential complex we intend to make a contribution to easing the tension somewhat on Munich’s housing market and thus also to meeting our societal responsibilities.”
To date, the Hausinvest fund, which has assets under management of approximately €15bn, has primarily invested in commercial real estate, with residential property as an addition in individual properties.
In April this year, the Hausinvest fund announced plans to invest about €2bn in German residential real estate within the next five years by teaming up with Wertgrund.
The residential buildings in the Nockherberg quarter are already the third acquisition, following other construction projects in Darmstadt and Dresden.
“We are making excellent progress with the development of the residential portfolio,” Schüttauf said.