German micro-living specialist International Campus has announced plans to enter the temporary housing market with a 160-aparment scheme in Munich.
The company, which develops student residences across Germany under The Fizz brand, is constructing a 7,100 m2 boarding house offering apartment stays of up to six months for young professionals, commuters, business consultants, expatriates and employees. Operated as 'The Fizz Short Stay', the property will be built on a recently acquired plot of land on Landwehrstrasse in Munich.
'Munich is an ideal location for our new, high-quality housing and service product, which forms part of International Campus’s innovative The Fizz umbrella brand strategy,' commented Horst Lieder, CEO of International Campus. 'With 'The Fizz Short Stay', we are responding to the rapidly growing demand for convenient and fully equipped apartments in the temporary housing market segment in Munich. We will be developing and operating a temporary housing product for the first time in a dynamic market environment. We are planning further locations in Munich and other major German cities.'
The project development has been sold to Württembergische Lebensversicherung AG, which has also signed a 15-year general lease agreement with International Campus. International Campus divested two student residences in Bremen and Freiburg to Württembergische Lebensversicherung last year. 'The sale of our project development to Württembergische Lebensversicherung represents a logical extension of our joint, long-term cooperation,' added Lieder.
The project is expected to be completed by the end of 2018.
'There were two decisive factors for us for the acquisition of the project development on Landwehrstraße in Munich. Firstly, the convincing 'The Fizz Short Stay' product concept in a central Munich location, which represents an innovative response to the rapidly growing demand for temporary housing products and promises to generate sustainably attractive yields,' commented Klaus Betz, head of real estate at Württembergische Lebensversicherung.
'There are more DAX corporations in Munich than in any other German city, and the percentage of the population who are university graduates is extremely high at 30%. Secondly, the experience and operator expertise of International Campus AG in the micro-living segment was pivotal for us. The cooperation with International Campus brings major advantages for both parties,' Betz concluded.
