Munich-headquartered asset manager Domicil Real Estate has acquired a portfolio of micro-apartments in nine German locations, comprising 13 properties, for €252 mln from AviaRent Invest.
The deal represents one of the largest acquisitions in the micro-apartment segment in Germany, and was executed on behalf of Danish pension fund PFA and for the firm's own portfolio.
Twelve properties will be transferred to the PFA German real estate portfolio, which is managed by Domicil, and one residential building in Frankfurt is being purchased by Domicil for its own account. The portfolio has a total leasable area of 42,000 m2 across 1,480 residential units and 426 car-parking spaces and represents PFA's first foray into the sector.
Andre Schmöller, chief investment officer of Domicil Real Estate said: 'With the purchase of the MikroQuartier I portfolio, PFA is significantly expanding its involvement in the German residential real estate market. PFA’s long-term investment horizon is around 20 years.
'The increasing mobility among young professionals and students will also lead to high demand for temporary housing solutions in the future. We are of course particularly pleased that we were able to realise one of the largest micro-apartment deals in German history.'
The properties are centrally located in Frankfurt am Main, Hamburg, Dieburg, Cologne-Deutz, Weimar, Munich, Hanover, Berlin and Bonn. The largest property in the portfolio is the Hühnerposten apartment building in Hamburg with a total of 353 units.
Hamburg is also the largest local component in the portfolio, with a total of 479 units and three properties, followed by Cologne-Deutz with two properties and 236 units, Frankfurt with two apartment buildings and 203 units, then Hanover with 194, Dieburg with 142, Bonn with 92, Berlin with 52, Weimar with 49 and Munich with 33 units and one property each.
Schmöller added: 'We will also bring our dedicated residential real estate know-how to bear in the management of these properties, for example so as to improve the letting rates with a view to the post-Corona period and optimise the portfolio in economic terms.'
Domicil was advised on legal aspects of the transaction by Jebens Mensching. Case Real Estate accompanied the purchase as a technical partner, with PWC acting as the tax advisor.