German pension fund invests in residential complex through Primevest

Primevest Capital Partners has acquired a newly-built residential complex on behalf of a south German pension fund.

The Dutch-German investment manager said it has invested €9m to buy the 47 subsidised apartments in Aachen from Merkur Development Holding.

The asset is located on Drosselweg 17-25 to the southeast of Aachen’s city centre. The complex was completed in December 2020 and comprises five three-storey buildings with a mezzanine floor together with 38 residents’ parking spaces to the rear.

Danica Cicmil, fund and acquisition manager at Primevest Capital Partners, said: “Aachen is an important regional employment hub on the western border of North Rhine-Westphalia and the city’s current shortfall of modern affordable housing will rise in the future due to its growing population, particularly when rental subsidies for a substantial portion of this segment are withdrawn in 2027.

“These positive supply/demand market characteristics, combined with the low risk and secure income attributes of the asset make this latest acquisition an attractive proposition for our investors.”

To read the digital edition of the latest IPE Real Assets magazine click here.