Berlin-based investment manager Catella Residential Investment Management has announced the acquisition of two residential developments in Nuremberg and Stuttgart, Germany, for a total of €24 mln.
The acquisitions were made on behalf of an investment fund of a southern German utility. The fund is managed by Institutional Investment Partners 2IP.
The Nuremberg project will offer 2,600 m2 of space across 25 residential units, one commercial unit and an underground car park with 30 spaces. The seller is Kommunale Entwicklungs- und Wohnungsbaugesellschaft, which is on schedule to complete the building by the end of this year.
The Stuttgart asset is a seven-storey block of flats containing a total of 124 microapartments which will be handed over in September 2018 to a non-profit operator, a subsidiary of the Stuttgart Caritas Association. The operator has signed a 15-year lease for the property.
'Both project developments are already recording strong demand, because they are being built in the exact market segment for which there is fierce competition at present – small to medium-sized residential units. These types of properties are especially sought after in premium markets, where they are in extremely short supply. Both acquisitions have thus provided a long-term, stable investment opportunity for our clients,' said Matthias Bursi, deputy fund manager at Catella.
