Patrizia Immobilien AG has acquired a residential portfolio with a projected total of 525 student and business apartments in Leipzig and Mainz for €53m. The three properties of the portfolio are located in stable macro and micro-locations characterised by a significant excess demand in a residential real estate.
Christoph Langmack, Patrizia’s Head of Acquisitions Residential, said: “Student residences and business apartments generate a relatively stable and attractive return for our institutional clients, offer outstanding risk diversification and are therefore ideal for adding to investment portfolios.”
The vast majority of the portfolio rests with the two properties in Leipzig. One is a new building for student residences on Kurt-Schumacher-Straße, with 229 apartments divided across c. 5,000 m² of space, while the other is an existing building with 246 apartments in Johannisgasse offering around 6,300 m² of space. The latter property is to be revitalised and used as student dormitories in the future. With almost 40,000 students, Leipzig is one of the most important educational and research locations in Germany.
The property in Mainz is an existing building on Rheinallee which, once a programme of refurbishment and modernisation is complete, will offer 50 business apartments. The project development is within a short walking distance of some of the city’s biggest employers.