Commerz Real Capital Management has purchased two under-construction properties for students and the elderly in Hanover, Germany, for €36 mln.
The vendor in the transaction was developer, Aragon Immo Project. Commerz bought the asset on behalf of its CR Institutional Smart Living Fund. Cube Life will be responsible for managing the properties.
The student accommodation is located in Schulenburger Landstrasse 114, comprising 241 apartments across 5,750 m2. The senior living property is made up of 27 barrier-free units, located at Voltmerstrasse 71c.
Hanover ranks among the largest educational locations in Germany with nearly 48,000 students at nine universities and colleges. In the past ten years the population in the Hanover region has increased by approx. 6.4% to around 1.17 mln.
Johannes Anschott, Commerz Real board member for institutional business, said: ‘Both student accommodation and sheltered housing for senior citizens are ideally suited to the investment strategy for our Smart Living Fund, as special residential forms that will see high demand in the future.’
The Smart Living Fund is an open-ended special alternative investment fund for professional and semi-professinal investors. It launched at the end of 2016 and is expected to invest around €300 mln in student residential complexes in Germany.