Union Investment has acquired two planned micro-living properties in Düsseldorf and Hamburg comprising a total of 250 apartments for its Urban Living Nr. 1 special fund. The purchase prices were not disclosed.
“Düsseldorf and Hamburg are outstanding locations for micro-living investments. In both cities, demand from various user groups for functional furnished apartments is predicted to remain high well into the future. The two new acquisitions are therefore an excellent fit with the Urban Living Nr. 1 special fund portfolio. We expect our fund to grow further in 2020 and these acquisitions are a promising sign of things to come,” said Henrik von Bothmer, Senior Investment Manager Micro-Living at Union Investment.
“Although we don’t yet know what the long-term impact of the pandemic will be, we anticipate that demand for living accommodation, particularly for smaller apartments in major cities, will continue to outstrip supply,” he added.
The vendor and developer of the micro-living project in Düsseldorf is Development Partner AG. The property, which comprises 184 apartments across some 5,200 sq m of rental space, is being built at Himmelgeister Straße 270 in the immediate vicinity of the university hospital and Heinrich Heine University. Completion is scheduled for the middle of 2021. The fully furnished apartments will have an average size of 28 sq m.
The vendor and developer of the real estate project in Hamburg is the GBI group, operating via its Hamburg-based associate NORD PROJECT. The 66 furnished apartments covering approximately 3,600 sq m of rental space are set to be completed by autumn 2022. The units will have an average size of 50 sq m, with most consisting of two rooms. They are being built on Schultzweg in south-central Hamburg, close to the main railway station and city centre.