Tishman Speyer has acquired an 88-unit housing project in Grenzach-Wyhlen in southwest Germany for an undisclosed amount.
The real estate manager, investing on behalf of an open-ended fund, is buying the housing project in a forward funding deal from Dutch construction and development company Ten Brinke.
The asset forms part of the Kapellenbach-Ost urban quarter development.
Guido Boltes, senior director at Tishman Speyer, said: “The project combines first-class residential space with sustainable urban development in a budding new quarter. The vibrant Basel metropolitan region, the dynamic border triangle between Germany, France and Switzerland, and the high demand for residential space in the German-Swiss border region, make this project a very attractive investment.”
Charles Smith, managing director at Tishman Speyer, said: “Investors’ expectations on the ROI [return on investment] of real estate investments have grown significantly following the interest rate reversal. At the same time, demand for ESG-compliant products remains high.
“This makes subsidised housing with KfW-40 QNG standard and a social housing component, particularly in Baden-Württemberg and Bavaria, an interesting opportunity. We have a comprehensive pipeline in that segment and will be opening access to investors into that particular asset class in Germany.”
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