Invesco Real Estate has acquired Mainwald, a 22.600m² residential complex in Germany from LBBW Immobilien Development, the vendor and project developer. The forward funding development is the first residential asset the firm has acquired for its core pan-European flagship strategy. The newly-built, high-quality and energy efficient residential complex, situated in the upcoming residential market of Niederrad in Frankfurt, will comprise over 500 rental units, 321 furnished micro-apartments and 188 rental dwellings with direct access to an underground car park with 291 parking spaces. Completion of the development is anticipated for the fourth quarter in 2020. The purchase price was not disclosed.
Jon Pierce, Senior Director – Fund Management at Invesco commented: “This opportunity enables the planned strategic move of our core pan-European strategy into the residential sector and further enhances the diversification of the €3.7bn portfolio. We are delighted to add this high-quality residential property to our core European portfolio. Germany has an established residential rental market, providing solid market fundamentals, but a material undersupply of modern residential products in key gateway cities. We expect this to result in upward pressures on rental levels and consequently drive NOI growth for our strategy; potentially leading to stable accretive long-term income for our global investors.”
Fabian Manegold, Senior Director – Transactions at Invesco added: “Due to our local market knowledge and long-standing experience on the German and wider European residential markets, we were able to secure this demand-oriented property. The location is characterised by good local amenities, excellent transport links to Frankfurt CBD and the airport. Additionally, Niederrad is currently transforming into an international, fully mixed-use residential hotspot and the investment can benefit from the further population and rental growth that is expected in Frankfurt in the next 10 years.”