Tishman Speyer has acquired a housing project with 88 units in Grenzach-Wyhlen in southwest Germany, close to Basel across the border in Switzerland. The seller was Ten Brinke. The project, secured in a forward deal, will become part of an open-ended Special Fund.
The asset is part of the urban quarter development Kapellenbach-Ost, a 144,000m2 residential area. It encompasses 6.825m2 of rental space in total and will be built to the highest specifications in sustainability and energy efficiency (German KfW-40-NH standard). It also includes 105 parking spaces in an underground car park and 14 outdoor spaces. The asset will have a diversified tenant structure with a 30% share of social housing.
Guido Boltes, Senior Director at Tishman Speyer, said: “The project combines first-class residential space with sustainable urban development in a budding new quarter. The vibrant Basel metropolitan region, the dynamic border triangle between Germany, France and Switzerland and the high demand for residential space in the German-Swiss border region, make this project a very attractive investment.”
The property is located in the centre of Grenzach-Wyhlen, surrounded by residential and green spaces, and is very well connected. Central Basel is only a 15-minute drive away. The Basel Badischer Bf station is eight minutes by train and the proximity to motorways A5 and A98 links up to the wider regional infrastructure network.
Charles Smith, Managing Director at Tishman Speyer, added: "Investors’ expectations on the ROI of real estate investments have grown significantly following the interest rate reversal. At the same time, demand for ESG-compliant product remains high. This makes subsidized housing with KfW-40 QNG standard and a social housing component, particularly in Baden-Württemberg and Bavaria, an interesting opportunity. We have a comprehensive pipeline in that segment and will be opening access to investors into that particular asset class in Germany.”
Jebens Mensching and Kroll Real Estate Advisory Group advised on the transaction.
