German fund manager Union Investment has purchased 'smart' student housing asset, Living House Berlin, from developer Carnaby Capital for an undisclosed amount.
Located in the German capital, the co-living property tackles the issue of rising rental prices which risk making tenancies unaffordable for students and young professionals.
Billed by the developer as the first smart building in the student accommodation sector, Living House Berlin, which opened last year and been fully let since, features 172 furnished rooms renting for less than €500 a month, on average.
Living House Berlin’s ‘smart’ credentials come from the fact that all its processes are digitised, speeding up contract signing, building and tenant management. Other digital services include monitoring of consumption data relating to water, electricity and heating, calculation of utility costs, key management, a tenant portal with integrated app and information about facilities.
Welcoming the sale, Carnaby Capital shareholder Per Lessmann, said: 'We are delighted to have sold the building to a large institutional investor like Union Investment as this demonstrates great confidence in our product.
‘Carnaby Capital’s co-living concept is a compelling response to the problem of ever increasing rents. We found the all-in monthly rent of under €500 and close proximity to the University campus highly attractive. Based on the level of rent, we anticipate that it will be possible to let rooms in Living House Berlin to a relatively large number of students. As such, we expect assured long-term letting viability.'
Tom Leppin, founder and managing partner of Carnaby Capital, said: 'Living House Berlin sets benchmarks for contemporary student accommodation in Germany and is the first development project to be completed in line with Carnaby Capital’s smart building concept.’