Union Investment’s micro-apartment-focused fund has expanded its portfolio with the acquisition of a planned complex in Germany.

The Hamburg-based real estate manager’s Urban Living Nr 1 fund is buying the 170 micro-apartments at 20 in Dresden from developer Grundstein Bauträger for an undisclosed sum.

The 6,000sqm complex is scheduled for completion at the end of the year.

The latest deal is the fourth acquisition for the Urban Living Nr 1 fund, which targets micro-living segment in urban areas of Europe and especially Germany.

In addition to Dresden, the fund is already invested in Wiesbaden, Vienna and Graz, with further growth planned, the manager said.

Henrik von Bothmer, micro-living investment manager at Union Investment Real Estate, said: “The central location in the east of Dresden’s old town is ideal for micro-apartments designed for temporary use. We are therefore confident that this area will provide a high degree of investment security going forward.

“As Dresden is a city of major economic significance for the entire region, it attracts a very high number of long-distance commuters. The new complex is specifically designed to appeal to this target group.”