Berlin-based company follows up on announcement last August that it was expanding activities to the micro-living sector
Berlin-based Capital Bay has acquired a serviced apartment building in Munich for its new €300 mln micro living fund.
Christoph Geißler, chief investment officer, said in a company release on Tuesday, ‘We have taken a first major step in the growing micro-living market and will build on this in the long term. Two more properties in similarly attractive locations are currently in the purchase phase.’
The announcement follows Capital Bay’s proclamation in August 2018 that it would expand activities into the micro-living sector. On 1 September, it established its own platform under the name CB Micro Living having acquired the entire management team of UPARTMENTS Real Estate, formerly YOUNIQ Service, from Corestate Capital.
Some 17 employees of UPARTMENTS Real Estate transferred over and the team has since expanded to around 25. CB Micro Living’s medium-term goal is to build a portfolio of at least 10,000 apartments under management with services including asset, property and facility management, letting, accounting and marketing of properties.
The maiden fund deal is in the mid-double-digit million euro range, and the seller is a joint venture between SEG Development GmbH and Bull Capital. CB Micro Living will take over operations of the property on a long-term mandate.
The new building is situated on a 5,300 sq m plot in Munich’s Freiham district and has 331 serviced apartments with living space of between 18 and 33 sq m. The units are fully furnished and equipped with their own kitchens. As well as a fitness zone, laundry rooms and spacious communal areas, the apartment building also has a bar with terrace, a restaurant and a breakfast room.
‘We have secured a property in a top location in a highly competitive market,’ said Alexander Kersting, managing partner and director of CB Micro Living. ‘Demand for serviced apartments is extremely high in Munich – due to a short supply of small yet high-end homes. We therefore expect occupancy to be continuously high.’ CB Micro Living will begin letting the apartments in September this year.
George Salden is CEO of Capital Bay and Rolf Schneider is COO.