Commerz Real, the property arm of Commerzbank, has acquired a residential scheme in Heidelberg from project developer Diringer & Scheidel Wohnbau.
Financial details of the forward-funding agreement were not disclosed.
Dubbed Kopernikushof, the project comprises 98 residential units, with construction scheduled to begin at the end of 2021. The apartments should be ready for occupation at the end of 2023.
The asset was acquired for Commerz Real's Hausinvest. 70 of the rental apartments are to be private housing, with 28 residential units income-based subsidised housing.
The two-building-complex includes 7,900 m2 of residential space and 600 m2 of commercial space, on a 5,000 m2 plot.
All the apartments will have a patio, loggia or a balcony. In addition, there will be 132 underground parking spaces, plus charging stations for electric cars.
The complex is being constructed to the KfW energy-efficient housing 55 standard and will have a system of photovoltaic panels.
Mario Schüttauf, fund manager for Hausinvest, said: 'Thus it excellently suits our investment strategy, which is geared to environmental and social sustainability.'
Hausinvest is currently planning to expand the residential proportion of its portfolio from 6.7% to 10-30%.
Kopernikushof is centrally located in the new Bahnstadt district in the southern part of Heidelberg in the immediate vicinity of the Quartierszentrum. The district will be home to one of the world’s largest energy-efficient passive house estates, and is one of Germany’s largest urban development projects with an area of 116 hectares.
Commerz Real is already familiar with the location from the Star Inn Hotel in the immediate vicinity which is also in the Hausinvest portfolio.
In the due diligence Commerz Real was advised on legal aspects of the transaction by Greenberg Traurig and on technical issues by Arcadis.