INTERVIEW DREF in good position as German student market heats up

Germany’s student housing market is heating up with a number of portfolios coming on to the market in the first weeks of 2016, according to Felix Bauer, CEO of Deutsche Real Estate Funds (DREF).

Germany’s student housing market is heating up with a number of portfolios coming on to the market in the first weeks of 2016, according to Felix Bauer, CEO of Deutsche Real Estate Funds (DREF).

Bauer told PropertyEU that DREF had taken the decision to brand its portfolio of 3,000 student residences across Germany as it looks to reinforce its market leading position in the sector.

‘Finally we are seeing some movement and trading in Germany,’ he said. ‘There’s a number of portfolios above €100 mln and five or six buildings. There's movement now in the German market with insurance, pension funds, institutional money moving in.

‘Our bond was the first institutional bond in that sector and we are looking forward to an exciting 2016 in German student housing which we think is one of the least volatile asset classes at the moment.’

DREF recently secured around €150 mln to invest in student residences through a revolving credit facility with Chenavari Investment Managers, raising its total amount of available capital for 2016 to €150 mln. Bauer has said the company plans to double the size of its portfolio in the course of the year.

The branding exercise included an intensive consultation with students to gauge what their priorities were in choosing accommodation. The Twenty First brand will be implemented in both to new build and refurbished properties, Bauer said.

‘[Students] want to have than a flat that doesn't just include internet, but also other services like community services and cleaning etc. They want to understand the pricing of the rooms, they want to understand the services which are included, they want to have information and they want to have a community within their student home,’ he said.

‘So we implemented all these things with our brand, Twenty First, and the website, and we are now proceeding to brand those 3,000 apartments.'

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