The asset and portfolio manager Domicil Real Estate AG has realized one of the largest acquisitions in the micro-apartment segment in Germany for the Danish pension fund PFA and its own portfolio. The Munich-based company is purchasing a portfolio with a total of 13 properties and a gross investment volume of over 252 million euros. 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 seller of the 1,480 residential units with a leasable area of 42,000 square metres and 426 car parking spaces is a fund issued by AviaRent Invest AG. The purchase is PFA’s first investment in the micro-apartment sector. Domicil Real Estate AG is the asset and portfolio manager for PFA in Germany.
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 striking “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.
In total, the 1,480 residential units are thus spread across nine locations in Germany.
“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 realize one of the largest micro-apartment deals in German history,” explains Andre Schmöller, CIO of Domicil Real Estate AG, adding: “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 GmbH accompanied the purchase as a technical partner, with PWC acting as the tax advisor.
© Images: AviaRent | Andreas Schwarz