Investment manager Invesco Real Estate (IRE) has acquired Mainwald, a 22,600 m2 residential complex in Germany from LBBW Immobilien Development, the vendor and project developer.
The development is the first residential asset the firm has acquired for its core pan-European flagship strategy.
'This opportunity enables the planned strategic move of our core pan-European strategy into the residential sector and further enhances the diversification of the €3.7 bn portfolio,' commented Jon Pierce, senior director of fund management at IRE.
Located in the upcoming residential market of Niederrad in Frankfurt, the new complex will comprise over 500 rental units, 321 furnished micro-apartments and 188 rental dwellings with direct access to an underground car park with 291 parking spaces. Completion of the development is anticipated for the fourth quarter in 2020.
Fabian Manegold, senior director of transactions at IRE, said that the Niederrad market is currently transforming into an international, fully mixed-use residential hotspot. 'The investment can benefit from the further population and rental growth that is expected in Frankfurt in the next 10 years,' he noted.
BNP Paribas Real Estate and NAI apollo acted on behalf of LBBW Immobilien Development. HauckSchuchardt Partnerschaft von Steuerberatern und Rechtsanwälten were the legal advisers on the seller side while Invesco was advised by Gleiss Lutz.
