Germany's Commerz Real Capital Management Company has purchased a micro-apartment complex that is to be newly constructed in Darmstadt for its Commerz Real Institutional Smart Living Fund.
Financial details were not disclosed.
The seller is a joint venture between Mainzer Aufbaugesellschaft (MAG) and i Live, a project developer and operator of micro-apartment complexes. The acquisition was structured as an asset deal in the form of a forward funding agreement.
The complex, located at Im Haardtring 15 in the Darmstadt West district, is to provide 368 apartments for students, young professionals and commuters, as well as 93 underground car parking spaces and 360 bicycle stands, on a total floor space of around 9,000 m2 by the autumn of 2021.
'As a university city with a large number of research facilities, a dynamic economy and its proximity to Frankfurt am Main, Darmstadt is an ideal investment location for our Smart Living Fund,' said Heiko Szczodrowski, head of asset structuring portfolio management at Commerz Real.
Following completion i Live will assume responsibility for the letting and property management.
In July of this year Commerz Real, together with Wertgrund Immobilien, acquired a construction project with eight multi-family houses from an MAG subsidiary for its open-ended real estate fund; the foundation stone ceremony took place in September.
The open-ended special alternative investment fund Commerz Real Institutional Smart Living Fund currently holds investments in six student- and micro-apartment complexes in Germany for professional and semi-professional investors.
Commerz Real was advised on the transaction by Noerr LLP.