AXA IM - Real Assets has completed the acquisition of an urban residential development in Dresden, Germany, for c.€100m, on behalf of ERAFP, the French Public Service Additional Pension Scheme. The development will deliver close to 350 new homes.
The property is located in Johannstadt which is east of the historical inner city of Dresden, the state capital of Saxony. Close to local amenities and green spaces, the development is on the banks of the river Elbe and is 15 minutes’ walk to the ‘old town’. Known as “Guntzareal”, the development is well connected to the public transport system and is adjacent to three tram stops. It is also close to a number of the city’s university campuses and major employers.
The scheme is expected to complete in 2020 and will deliver 211 residential units and 137 fully furnished micro-apartments, as well as commercial and retail areas which aim to serve the daily needs of the residential component. Approximately 50% of the retail area is already let on long-term leases to major German retail operators.
Dresden has approximately 550,000 inhabitants and is underpinned by strong economic and social fundamentals, including the expectation of rising average income and falling rates of unemployment. Together with the adjacent extension development of the local savings association as well as the rollout of the district’s re-vitalisation plan which concludes in 2020, Guntzareal is part of a sustainable effort to strengthen the quality of the area.
AXA IM - Real Assets has a strong track record in Germany and currently has over €6bn of assets under management in the country including c.€640m of residential assets (as of the end of June 2017).
Sven Krumpholz, Head of Asset Management & Transactions in Germany at AXA IM - Real Assets, commented: “This major urban development will deliver new apartments to the growing yet supply-constrained local market in Dresden. We believe that our knowledge and track record in Germany, combined with our development expertise, will support the ongoing delivery and future success of this scheme.”
