International Campus AG, a specialist in micro-living products, is developing a boardinghouse with around 160 apartments and a gross floor area of approximately 7,100m² on a recently acquired plot of land on Landwehrstrasse in Munich. The boardinghouse will be developed and operated with the new product brand “THE FIZZ Short Stay” and adds a new type of housing to the growing “THE FIZZ” brand family. The target group of “THE FIZZ Short Stay” comprises young professionals, commuters, business consultants, expatriates and employees seeking a convenient and fully equipped apartment in Munich for a period of up to six months. The project development has been sold to Württembergische Lebensversicherung AG, which has also signed a 15-year general lease agreement with International Campus. International Campus had already sold two student residences in Bremen and Freiburg to Württembergische Lebensversicherung AG in the middle of 2016. The start of construction of “THE FIZZ Short Stay” in Munich is scheduled for second half of 2017. It is expected to be completed by the end of 2018.
- International Campus to develop a boardinghouse with around 160 apartments and 41 parking spaces on Landwehrstraße in central Munich
- Target group comprises young professionals, executives, business consultants, expatriates, commuters and other temporary employees
- Start of construction of “THE FIZZ Short Stay Munich” scheduled for second half of 2017
- Planned to be completed by end of 2018
- Project development has been sold to Württembergische Lebensversicherung AG
Horst Lieder, CEO of International Campus AG, comments: “Munich is an ideal location for our new, high-quality housing and service product, which forms part of International Campus’s innovative THE FIZZ umbrella brand strategy. With “THE FIZZ Short Stay”, we are responding to the rapidly growing demand for convenient and fully equipped apartments in the temporary housing market segment in Munich. We will be developing and operating a temporary housing product for the first time in a dynamic market environment. We are planning further locations in Munich and other major German cities.” Lieder explains the transaction: “The sale of our project development to Württembergische Lebensversicherung represents a logical extension of our joint, long-term cooperation.”
Klaus Betz, Head of Real Estate at Württembergische Lebensversicherung AG, comments: “There were two decisive factors for us for the acquisition of the project development on Landwehrstraße in Munich. Firstly, the convincing “THE FIZZ Short Stay” product concept in a central Munich location, which represents an innovative response to the rapidly growing demand for temporary housing products and promises to generate sustainably attractive yields. There are more DAX corporations in Munich than in any other German city, and the percentage of the population who are university graduates is extremely high at 30 per cent. Secondly, the experience and operator expertise of International Campus AG in the micro-living segment was pivotal for us. The cooperation with International Campus brings major advantages for both parties.”
“THE FIZZ Short Stay Munich” is systematically tailored to the expectations and requirements of the target group, offering fully equipped, high-quality and completely turnkey apartments with a floor area of 21 to 46 square metres, a modern bathroom with a shower, and a kitchenette. In line with the professional target groups’ need for calm and convenience, the property will feature a central, impressive entrance hall with a concierge service, underground parking spaces, high-quality fitness areas, a sky lounge with a bar and a rooftop terrace, as well as an extensive range of services.
Munich is an attractive and safe location with strong growth momentum and a high quality of life. Its population, economic output and purchasing power are all steadily increasing. According to forecasts by the City of Munich, there will be around 1.7 million residents in Munich in 2018. Purchasing power amounted to around EUR 30,800 per resident in 2015, compared to the German average of around EUR 22,300. As many as six DAX 30 companies are based in Munich.