International Campus, in a joint venture, has acquired a project development in Prague as part of its expansion plan into Central and Eastern Europe.
The Munich-based developer of student housing and micro-apartment buildings, has teamed up with the Czech project developer Karlín Group to buy a project development in the Holešovice district of Prague with 529 apartments for students.
No financial details were disclosed.
International Campus and Karlín Group each hold 50% in the joint venture.
On completion of the property by Karlín, International Campus will acquire its partner’s share of the joint venture and place the property in a dedicated special fund for institutional investors.
International Campus said the building that is to become “THE FIZZ Prague” will have a gross floor area above ground level of 16,529sqm over eight floors.
The opening is planned for the first quarter 2020.
Horst Lieder, the CEO of International Campus, said: “Our first acquisition in Prague sees us continuing our European expansion at a rapid pace. This is our first step to the Czech Republic, and we are taking it together with our expert local partner.
“Together, we intend to create 2,500 attractive apartments for students in Prague in the medium term. We are also in the process of acquiring additional properties in Central and Central Eastern European hot spots.”
Serge Borenstein, the president of Karlín, said: “A strong partner who has been operating many such enterprises in Europe will help us bring to life our long-term goal, which is not only to bring this student-housing project – very interesting investment-wise – to the Prague market but also build more of them in the coming years.
“This goes hand in hand with Karlín Group’s long-term strategy to focus in a professional manner on the niches of the market.”