Investment manager Patrizia has completed the acquisition of 237 new-build rental apartments across two forward deals in the greater Stuttgart area, marking a strategic expansion of its €19bn living sector portfolio in one of Germany's most resilient residential markets.
The transaction, valued at over €100m, comprises two developments totalling 21,500 m² in Nürtingen and Ostfildern, both benefiting from the region's robust employment market anchored by automotive and technology sectors. The forward deal structure allowed Patrizia to secure the assets during development, a strategic approach that's gaining traction among institutional investors seeking to lock in yields in supply-constrained markets before completion.
"Whether long-term or short-term, forward deals enable us to secure sustainable residential assets in prime locations for our investors and further expand our presence in the living sector," said Torsten Bergner, Head of Investment Management Living DACH at Patrizia. "The greater Stuttgart area is particularly promising due to its solid market fundamentals and structurally high demand for modern living space."
The larger of the two acquisitions, Neckarpark Nürtingen on Stuttgarter Straße, delivers 155 units spanning 14,140 m², developed by BPD. The riverside complex includes 23 social housing units and 161 underground parking spaces, with rooftop photovoltaic systems enhancing its ESG profile. The second asset, Stadteingang Ostfildern at Danzigerstraße 5-9, comprises 82 units across 7,441 m² with views stretching from Esslingen to Stuttgart, developed by HKPE.
What makes this transaction particularly notable for institutional investors is the implicit bet on Stuttgart's transformation into a sustainable mobility hub. With major automotive manufacturers pivoting to electric vehicle production and the region attracting significant R&D investment, rental demand from high-earning professionals is expected to remain structurally supported, even as Germany's broader residential market faces headwinds from elevated construction costs and financing pressures.
CASE Real Estate provided technical due diligence, whilst Dr. Asal (Thümmel, Schütze & Partner) delivered legal advisory services on the transactions.
People mentioned:
• Torsten Bergner, Head of Investment Management Living DACH, Patrizia
Companies mentioned:
• Patrizia, Investment manager
• BPD, Developer and seller
• HKPE, Developer and seller
• CASE Real Estate, Technical advisor
• Dr. Asal (Thümmel, Schütze & Partner), Legal advisor
