Capital Bay has acquired 27 residential units in Stuttgart-West with a total rental space of almost 2,000m² for its open-ended special AIF CB Wohnimmobilien Deutschland. The purchase price is in the low double-digit million-euro range. The seller is Neuerburg Vermogensverwaltungs KG from Dresden, Hansainvest acts as Service-KVG (fund manager). The seven-storey property, built in 1955/56, is located in Leuschnerstrasse and is currently undergoing a complete refurbishment. The residential units have a size between 33 and 100m², the area size is around 1,000m².
Stuttgart-West is one of the five inner-city districts of the state capital of Baden-Wurttemberg and is one of the most popular residential districts. The Feuersee and the main shopping street Königstraße are within walking distance of the property. Several schools, supermarkets, cafés and restaurants are in the immediate vicinity. Underground and suburban railway connections are right on the doorstep.
"The Stuttgart area is one of the strongest and most dynamic economic regions in Europe. Due to the strong excess demand for residential space, Stuttgart has now become the most expensive city in Germany. This will not change in the medium term," said Christoph Geissler, CIO of Capital Bay, "The purchase fits perfectly into the fund's acquisition strategy, which focuses on sustainably growing German cities with at least 100,000 inhabitants or on smaller cities in metropolitan regions with 20,000 inhabitants or more.”
Markus Holzer, Managing Director of CB Investment Management, added: "At the same time, we are pushing ahead with the regional diversification of our fund, as we have not previously invested in Stuttgart. With this purchase, we have currently placed €170m of the fund's assets - with a target volume of €300m."