Invesco Real Estate has added a wooden-built German development to its open-ended European residential real estate fund.
The manager said its Invesco European Living Fund has acquired the residential development from developer Quartiersmanufaktur in a forward-funding deal. Financial details were undisclosed.
The development in Mannheim, situated in the Rhine-Neckar metropolitan region, will consist of two separate buildings – Spinelli and Flairwood – with a total lettable area of 5,000sqm, including 480sqm of commercial space.
In total, the two buildings, constructed from sustainable wood, will have 45 apartments, with 22 positioned as shared living spaces.
Fabian Manegold, managing director in charge of transactions at Invesco, said: “Spinelli and Flairwood are best-in-class assets that we believe will help define the future of sustainability and high-end residential living in Germany.
”We’re delighted about the partnership with Quartiersmanufaktur and the ability to add this prime development to our European living portfolio. We continue to look for additional opportunities for our growing residential portfolio.”
Jan H Eitel, managing partner of Quartiersmanufaktur, said: “With our focus on affordable housing, innovative and sustainable construction methods and materials, special forms of housing, existing developments and conversions, we have always had sustainability in our DNA and residents’ satisfaction is what drives us.”
William Ertz, a senior fund management director at Invesco, said: “The role that broad ESG criteria and targets are playing in the evolution of the European residential sector should not be underestimated. Invesco is very clearly focused on leading the market through a portfolio of best-of-breed assets and partners.”
The deal is Invesco’s fourth acquisition this year for the Invesco Real Estate European Living Fund which launched in August last year.
The fund –which intends to have €500m worth of assets within the next two to three years – is focused on high-grade, turnkey residential developments with attractive social and environmental profiles located in strong, growing micro-locations in Europe.
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