Germany’s Union Investment has bought the Kontorhaus am Wall property in Bremen’s historic centre from property group Corestate for an undisclosed price.
The recently completed project consists of 86 serviced apartments, ranging in size from 22 m2 to 41 m2, designed for stays of up to six months.
The apartments include cooking facilities and benefit from ample communal areas on the ground floor and two roof terraces.
The property is on a 20-year lease to German serviced apartment operator Stayery, which offers temporary homes with hotel-style services mainly for young professionals.
Henrik von Bothmer, functional head of investment management micro-living at Union Investment, said: ‘Bremen has relatively few long stay accommodation options, while there is attractive potential demand due to the number of businesses and research companies based in the area. The Kontorhaus am Wall micro-location is ideal for a long stay product. In addition to being within easy reach of the city centre and restaurants, it is also close to the main railway station and directly opposite Wallanlagen park, a green oasis in the heart of Bremen.’
Stayery managing director Hannibal DuMont Schütte added: ‘The new site in Bremen is a perfect fit with our expansion strategy, which is focused on the urban centres of German growth locations that have good tourism offerings. In Union Investment, we also have an institutional partner whose commitment demonstrates the attractiveness of Stayery as a concept and of serviced apartments in general as a property type in the current climate.’
Kontorhaus am Wall was the seventh acquisition made on behalf of Hamburg-based real estate core fund Urban Living Nr. 1 that invests in modern micro apartment complexes for different target groups and selected development projects in Germany and other European countries.
Union Investment was advised by C.P.H. Projekt- und Baumanagement and Arcadis; GSK Stockmann; and Watson Farley & Williams, Apartmentservice Consulting carried out a market and location analysis, while the transaction was brokered by Colliers Hotel of Berlin and Robert C. Spies of Bremen.
