Bouwfonds spends EUR 37m on residential properties

Bouwfonds European Residential Fund has extended its residential real estate portfolio with the acquisition of student apartments in Toulouse, a complex in Munich and a property in Mannheim. The investment in these acquisitions amounts to EUR 37 mln in total, equal to 14 times the actual rent.

In the Munich district of Berg am Laim, the fund acquired a complex from the 1980s consisting of four buildings. The asset has a total of 61 apartments, six commercial units and 81 parking spaces. All apartments are let and have a balcony or terrace. The average size of the apartments is about 80 m². The investment amounts to EUR 12.4 mln.

The second acquisition involves a property, dating from the 1960s, in Mannheim, Neustadt. The property comprises a total of 66 residential units, 14 commercial units and 56 parking spaces. All of the residential units have a balcony. This property is fully let. The investment volume is EUR 8.4 mln.

In the third deal, the fund purchased a modern block of 404 student apartments in Toulouse, the third largest student city in France with more than 95,000 students. Constructed in 1990, the property is located in the Labège district. The average apartment size is 23 m² and each apartment has a kitchen and bathroom. The investment amounts to EUR 16.5 mln.

The fund now has properties in Germany, France, Norway and Sweden. The occupancy rate is about 97%. investment volume is currently around EUR 228 mln.

Bouwfonds REIM is looking to reach an investment volume of EUR 1.5 bn in residential properties by the end of 2013. In cooperation with Catella Real Estate, Bouwfonds REIM is responsible for the management through its local offices. The expected return will range between 5% and 6% annually, according to the German BVI-Method.