Commerz Real has acquired a 244-unit student residence, located at Adickesallee 36–38 in the Nordend-West district of Frankfurt, Germany, from the private business university Frankfurt School of Finance & Management. The company intends to demolish this building at the beginning of 2021, and erect a residential complex with 1,133 furnished serviced and student apartments on a leasable area of 39,000m². According to details released by Commerz Real this is currently the largest construction project of its kind in Germany. The scheme will be developed by i Live, which specialises in smart living concepts. The total investment volume amounts to c. €226.5m. Following completion, the property is to be part of the two real estate funds “Commerz Real Institutional Smart Living Fund” and “Commerz Real Smart Living Europe Fund”.
It is expected that out of the 1,133 units 995 will comprise student apartments. It is planned that 537 of them be publicly-subsidised or rent-capped housing. A further 458 student apartments and the 138 serviced apartments will be leased without any restrictions, meaning they can be leased not only to students but also to teaching staff and commuters, for example.
“With the new development we can support the city and Frankfurt School of Finance & Management in providing as much housing as possible to meet people’s needs,” said Johannes Anschott, a member of the board of management of Commerz Real. “Increasing numbers of students, the flexibilisation of the labour market and the rise in the number of single households are driving demand for such apartments throughout Europe.”
“We are pleased that we are now commencing a third joint project with Commerz Real with the largest planned student and furnished serviced apartment project in Germany and that we are able to contribute our proven i Live operator concept,” said Amos Engelhardt, the managing partner of the i Live Group.
