German fund manager Commerz Real and Wertgrund Immobilien have acquired a residential scheme in Darmstadt, Germany, marking their first deal in a new housing-focused partnership.
Financial details were not disclosed.
The 15,600 m2 project, acquired from from developer Mag Projektentwicklungs, will be transferred to Commerz Real's open-ended fund hausInvest in 2021.
Residential specialist Wertgrund executed the transaction, structured as a forward funding agreement, and will assume the leasing and property management, the firms said. The construction project comprises 194 apartments, 49 of which are publicly subsidised.
'A successful start to our collaboration,' said Andreas Muschter, CEO of Commerz Real. 'As a new construction with subsidised residential units, in a developing city with strong demand for apartments, this property corresponds perfectly with the hausInvest investment strategy.'
HuasInvest, Germany's second-largest open-ended real estate fund has a volume of around €14.9 bn and intends to invest some €2 bn in residential real estate within the next four to five years. Commerz Real said it initiated the partnership with Wertgrund in April of this year to further this aim.
'As a university city in the burgeoning Rhine-Main metropolitan region Darmstadt has a positive population development and very good growth prognoses,' concluded Thomas Meyer, chairman of Wertgrund's board.
