Listed German property investor Patrizia Immobilien has acquired a residential portfolio projected to comprise 525 student and business apartments in Leipzig and Mainz for €53 mln on behalf of a separate account mandate from a large German pension fund.
The three properties which make up the portfolio are located in stable macro and micro locations, according to Patrizia, characterised by strong demand for residential real estate.
'Student residences and business apartments generate a relatively stable and attractive return for our institutional clients, offer outstanding risk diversification and are therefore ideal for adding to investment portfolios,' said Christoph Langmack, Patrizia's head of acquisitions residential.
The two properties in the university city of Leipzig account for the bulk of the portfolio. One is a new building for student residences on Kurt-Schumacher-Straße, with 229 apartments divided across around 5,000 m2 of living space, while the other is an existing building with 246 apartments in Johannisgasse offering around 6,300 m2 of living space. The latter property is to be converted into student dormitories in the future.
The property in Mainz is an existing building on Rheinallee which will be transformed into 50 business apartments.
Patrizia has increasingly acquired student dormitories and micro apartments in recent years, executing transactions featuring around 350 residential units across Hamburg and Münster in 2017 alone.
