CBRE Europe Value Partners 2 (EVP2), a value-add fund managed by CBRE Global Investors, announced on Wednesday that it is partnering with CR Investment Management to pursue a serviced apartment development strategy in Germany.
The joint venture will see the planned growth of Stayery, a German based provider of serviced boutique apartments.
Stayery offers innovative accommodation with the comfort of a private apartment and the service of a hotel, with a particular focus on young professionals. The project developments will be concentrated on cities with major employer clusters, or underdeveloped hotel markets. In addition, there will be a focus on university cities. The first Stayery opened in Berlin in January 2019 and further apartment buildings are currently being built in Cologne, Frankfurt and Bielefeld.
Commenting on the investment rationale, Christina Forrest, fund manager, EVP2, CBRE Global Investors, said: 'We have carried out detailed analysis to identify cities displaying appropriate market fundamentals for the serviced apartment market. Germany’s corporate sector is fragmented and decentralised, making it an attractive country in which to launch a serviced apartment venture.'
He added: 'CR have been active in this sector for many years and have an established partnership with Stayery. With strong institutional investor interest growing in this sector, we see great potential investing in this niche market.'
EVP2 is the second fund in the European value-add series for CBRE Global Investors. EVP2 pursues a reposition-to-core and develop-to-core strategy and has the ability to invest in all sectors with a pan-European remit.