German fund manager Union Investment has acquired a planned micro-apartment complex in Wiesbaden, Germany, from the scheme's developer, GBI.
Financial details were not disclosed.
Located in the immediate vicinity of Wiesbaden’s main railway station, the asset was purchased as part of a forward funding agreement. Situated at Klingholzstraße 8, and comprising 187 apartments across six floors, the scheme is scheduled for completion by the end of 2020.
'The economy in and around Wiesbaden has been posting clear growth for years. Our forecasts indicate that this positive trend is likely to continue,' said Henrik von Bothmer, investment manager micro-living at Union Investment Real Estate.
'This will attract a lot of young professionals and others engaged in project work – for example in the consulting sector, which has an exceptionally strong presence in Wiesbaden,' Bothmer added.
The complex will comprise 1-2 room homes ranging from 30-50 m2. The asset's total rental space will exceed 4,400 m2, with parking for 107 cars.
Following on from acquisitions in Graz and Vienna, the micro-apartment complex in Wiesbaden is the third property to be added to the portfolio of special fund Urban Living Nr. 1, launched in 2017.
However, it is the first in the fund to be targeted primarily at young professionals and long-distance commuters. Workplaces in Frankfurt am Main and in Mainz are within reach.
'All in all, this creates outstanding investment prospects for us, especially as there is currently no competition in Wiesbaden for this type of accommodation aimed at the specific target groups,' concluded Bothmer.
