CBRE Europe Value Partners 2 (EVP2), a value-add fund managed by CBRE Global Investors, has partnered with CR Investment Management to pursue a serviced apartment development strategy in Germany. The joint venture will see the planned growth of Stayery, a German-based provider of serviced boutique apartments. The project developments will be concentrated on cities with major employer clusters, or underdeveloped hotel markets. In addition, there will be a focus on university cities. The first Stayery opened in Berlin in January 2019 and further apartment buildings are currently being built in Cologne, Frankfurt and Bielefeld.
Commenting on the investment rationale, Christina Forrest, Fund Manager, EVP2, CBRE Global Investors, said: “We have carried out detailed analysis to identify cities displaying appropriate market fundamentals for the serviced apartment market. Germany’s corporate sector is fragmented and decentralised, making it an attractive country in which to launch a serviced apartment venture. CR have been active in this sector for many years and have an established partnership with Stayery. With strong institutional investor interest growing in this sector, we see great potential investing in this niche market.”
“We believe there is a strong future market for serviced apartments, and we are convinced by the Stayery concept. That is why we made our first strategic investment in the company last year. Together with CBRE Global Investors, we now have enough firepower to really accelerate Stayery’s growth,” said Torsten Hollstein, Co-Founder, CR.
“Stayery’s sophisticated full-service boutique apartment concept appeals particularly to business travellers who, unlike tourists, may have to spend several weeks or even months in a city, and who are interested in modern accommodation where they have the opportunity to meet like-minded people,” said Alexander Lackner, Managing Director, CR.
