Domicil, LEG, Deutsche Investment close fresh residential deals
Munich-based Domicil Real Estate Group, an investment and real estate service provider, has bought a portfolio of residential buildings in the Cologne and Frankfurt metropolitan areas from KGAL Investment Management. Financial details were not disclosed.
The deal includes 500 residential units in Neu-Isenburg beside Frankfurt, Cologne-Urbach and Frechen, all constructed between 1972 and 1994, with a total area of about 36,000 sqm. The portfolio was sold by special funds KGAL/HI Wohnen Core 2, advised by KGAL Investment Management.
According to Andre Schmöller, chief investment office at Domicil, “The purchase of the ‘Four West’ portfolio is another important milestone in our growth strategy with regard to property privatisation. The properties have enormous development potential and benefit from the high demand for housing in the metropolitan areas of the cities Cologne and Frankfurt.”
Andreas Polter, head of residential portfolio investment at Cushman & Wakefield, said: “We find the portfolio convincing because of its attractive size and the excellent locations within metropolitan regions with a strong economy. Once again it became clear that locations in the commuter belts of the Top 7 locations are benefiting from developments on the housing markets.”
Separately, in an asset deal, Düsseldorf’s listed LEG Immobililien bought 104 residential units under construction from Instone Real Estate Development, without revealing financial details.
The package of apartments, which comprise the first phase of the Wohnen im Hochfeld district in Dusseldorf-Unterbach, includes 16 publicly subsidised units, 66 affordable homes, and 22 privately financed units. In addition, the deal includes a children's day-care centre and a range of smaller commercial units in the neighbourhood development project.
'We are delighted that this partial acquisition of the Wohnen im Hochfeld project will see us continuing our state-wide new-build offensive in the direct vicinity of Unterbacher See in Dusseldorf,' said Axel Felke, CEO of LEG investment subsidiary LEG Solution.
He added, 'The proportion of subsidised and reasonably priced apartments in the package demonstrates our commitment to social responsibility and the fact that we will be able to offer inexpensive apartments even in rental markets under strain. As a reliable and highly experienced developer, Instone stands for the high quality of the project.’
Stefan Dahlmanns, COO for North Rhine-Westphalia at Instone Real Estate Development, said: 'The early sale of this sub-project is a positive indicator for the entire neighbourhood development, and an important milestone for us. With LEG, we have a trusted and long-term-oriented partner at our side. This will also greatly benefit the quality of the residential neighbourhood going forward.'
In addition to thhe Wohnen im Hochfeld neighbourhood, Instone is also developing and building the Niederkasseler Lohweg 20 residential project in Dusseldorf.
And in further residential investment news, the Hamburg-based Deutsche Investment KVG has just invested a further €100m in its core markets of Berlin and Hamburg. It bought a total of 472 residential and commercial units – a residential portfolio including ten assets in Berlin and one in Hamburg for €76.5m, and a further four residential buildings in Berlin from private investors for €23.5m. The deals were part of a single mandate for an institutional investor that Deutsche Investment manages with EB Group.
Despite the negative news currently circulating around investment in Berlin residential, Deutsche Investment KVG’s Michael Kryzanek said, “Berlin remains an attractive investment location for us, and we have every intention—as previously announced—to expand our footprint here. Because we are convinced that Berlin’s residential property market offers lucrative investment opportunities, especially for investors with conservative investment strategies and a long-term investment horizon,” (ssk)