German asset managers Aamundo and Universal-Investment have announced the acquisition of one of Germany's largest residential projects with the purchase of the Kleyer quarter in Frankfurt's Gallus district for an undisclosed amount.
The project, which is due to include over 1,200 residential units on 93,000 m2 of space, was bought from Instone Real Estate on behalf of client, German pension fund Bayerische Versorgungskammer (BVK).
Under the forward-funding transaction, landlord Instone Real Estate will be retained to build the urban neighbourhood, which will also include around 30% of subsidized housing.
Andreas Gräf, COO of Instone Real Estate, said: 'Instone Real Estate and Bayerische Versorgungskammer are already collaborating successfully on residential development projects in Bonn and Stuttgart. We are taking this quality cooperation to a new level now in Frankfurt.'
The neighbourhood development consists of a total of four residential blocks with interior courtyards as well as two additional building blocks. The existing office building will be demolished. In addition to the ongoing management of the quarter's development throughout the construction period, aamundo will also take over asset management upon completion. Beginning of construction is expected in 2020, with completion scheduled for 2024.
The former industrial site at Kleyerstrasse 94 used to be the headquarters of the US-American communications company Avaya, which left the location in 2013.
Instone had bought the site just before selling it to BVK from owners ZBG and Breevast in a deal brokered by CBRE.