YOUNIQ AG, the leading provider of high-quality student apartments in Germany, of which CORESTATE Capital, through one its investment vehicles, is a majority shareholder, has today announced that it has entered into an exclusive partnership with MPC Münchmeyer Petersen Capital AG.
The aim of this agreement is to initially issue several closed-end funds for Student Housing by the end of 2013. While MPC Capital AG will be responsible for the structuring and marketing of the funds as part of the cooperation, YOUNIQ AG will create and manage the high-quality student apartments.
The 'Student Housing' asset class will become significantly more attractive as a result of this partnership, given its accessibility to a broad investor base for the first time.
The first transaction to be realized totals circa 63 million, and includes the sale of a total of four student residential projects to the fund launched by MPC Capital. The placing is set to start in the third quarter of 2011.
The fund will acquire the YOUNIQ projects in Greifswald (176 units), Karlsruhe (approx. 370 units), Munich Schleissheimer Strasse (80 units), and a development property in Frankfurt am Main (approx. 250 units). The YOUNIQ student apartments are all located directly adjacent to major universities, are fully furnished, and are distinguished by fresh design.
Rents at the YOUNIQ properties are all inclusive, offering cost-transparency to students and encompass all ancillary costs such as heating, water, electricity and high-speed Internet connection.
Investors in the fund will benefit from YOUNIQ AG's subsequent rental of the assets and from YOUNIQ AG's management of the properties, with a rental agreement for a period of around 15 years.
Ralph Winter, Chairman of Corestate Capital AG, said: "A private market in student accommodation is evolving in Germany as a result of the growing significance of education at political and social levels, as well as rising student numbers and the accompanying scarcity of accommodation.
"Similar to the UK, the US and Australia, the student housing sector is now also becoming increasingly established as a separate asset class within the German real estate market, and will also become ever more attractive for private investors as a consequence.
"The niche student Housing, combined with intelligent design concepts is a strong investment case for those looking at the sector and this latest deal reflects YOUNIQ's growth strategy following the successful realization of capital increase."
Rainer Nonnengässer, CEO of YOUNIQ AG, added: "The fact that we have gained such an experienced partner with MPC Capital shows that we correctly assessed demand and it underlines the attractiveness of our product for investors.
"We will immediately reinvest the sales proceeds into new projects that we achieve after the relevant transfer of the properties to the fund. This will allow us to successively expand our market leading position, whilst continuing to hold around half of our properties in our portfolio, in line with our stated strategy."