Hamburg-headquartered fund manager Union Investment has acquired a micro-living project in Dresden from the complex's developer, Grundstein Bauträger.
Financial details were not disclosed.
The asset, which represents the firm's fourth acquisition for its special fund Urban Living Nr. 1, comprises 170 micro-apartments across a total rental area of 6,000 m2, plus 100 car parking spaces. It is due for completion at the end of 2019.
'The central location in the east of Dresden’s old town is ideal for micro-apartments designed for temporary use. We are therefore confident that this area will provide a high degree of investment security going forward,' said Henrik von Bothmer, investment manager micro-living at Union Investment Real Estate.
'As Dresden is a city of major economic significance for the entire region, it attracts a very high number of long-distance commuters. The new complex is specifically designed to appeal to this target group,' Von Bothmer added. The apartments are also expected to be used by young professionals and students, according to the firm.
Special fund Urban Living Nr. 1. focuses on the micro-living segment in urban areas of Europe and especially Germany. In addition to Dresden, the fund is already invested in Wiesbaden, Vienna and Graz, with further growth planned.
Union Investment was advised by GSK Stockmann + Kollegen and ES EnviroSustain during the due diligence process. The vendor was advised on commercial aspects of the transaction by BREIM GmbH, with law firm Knauthe providing legal advice.
