The Catella European Residential III Fund (CER III) has acquired a 177-unit fully rented student housing development in Leipzig, in the eastern German state of Saxony for c. €23m from the Family Office Drengenberg.
The 3,520m2 site development was completed in Q3 2023 and in addition to the residential units includes a food discounter supermarket on the ground floor, as well as 65 indoor and outdoor parking spaces. The asset is located in a lively diverse neighbourhood populated by students, artists and sub-cultures with numerous cafes, bars, restaurants, and small stores and is close to one of Leipzig’s universities.
Michael Keune, Managing Director at CRIM, said: “The latest investment in Leipzig by our CER III fund fully meets the environmental standards we demand from the assets in the portfolio for our investors. The acquisition also addresses another critical societal issue, the severe shortage of affordable and modern quality accommodation for students in major German and European cities when young people are struggling to take the first steps in their independent adult lives.”
The apartment sizes of the new property range from 20m2 to 45m2. All units are fully furnished and designed with a similar modern colour palette using high-quality materials. The student residence is connected to the district heating network and obtains all its electricity from Stadtwerke Leipzig, the regional energy supplier, which plans to become carbon-neutral by 2038. The property is currently rated as ‘energy label B’ (German standard KFW 55).
Image provided by Catella.
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