Invesco Real Estate’s core pan-European flagship strategy has made its first residential deal with the acquisition of a newly-built housing complex in Germany.

The global real estate investment manager’s €3.7bn core pan-European programme has acquired the Mainwald project, a 22,600sqm residential complex from LBBW Immobilien Development for an undisclosed sum.

Completion of the development is anticipated for the fourth quarter in 2020, Invesco said.

The residential complex - situated in the upcoming residential market of Niederrad in Frankfurt - will comprise over 500 rental units, 321 furnished micro-apartments and 188 rental dwellings with direct access to an underground car park with 291 parking spaces.

Jon Pierce, a senior director for fund management at Invesco, said: “This opportunity enables the planned strategic move of our core pan-European strategy into the residential sector and further enhances the diversification of the €3.7bn portfolio. We are delighted to add this high-quality residential property to our core European portfolio.”

Germany has an established residential rental market, providing solid market fundamentals, but a material undersupply of modern residential products in key gateway cities, Pierce said.

“We expect this to result in upward pressures on rental levels and consequently drive NOI growth for our strategy; potentially leading to stable accretive long-term income for our global investors.”