7 May 2018
Union Investment acquires planned student apartment complex THE FIZZ at Vienna’s main station
Completion scheduled for autumn 2019 / Second acquisition for Urban Living Nr. 1 special fund
Union Investment has secured the planned “THE FIZZ Vienna main station” micro apartment complex on Helmut Zilk Park for its Urban Living Nr. 1 special fund via a forward purchase agreement. The property will comprise over 195 apartments in one of Europe’s most popular university cities and is scheduled for completion in autumn 2019. The vendor is a joint venture between International Campus AG, CORAG and Kollitsch & Reichstamm. International Campus AG is a major operator of modern student housing. A subsidiary of the company will act as lessee. The parties agreed not to disclose details of the purchase price.
“There are some 190,000 students in Vienna, meaning that almost ten per cent of the city’s inhabitants are enrolled at a university. Due to the high location quality in the vicinity of the main railway station and the exceptional standard of apartment fit-out and services, the new complex will enjoy strong demand,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment Real Estate GmbH. There are currently only around 20,000 student accommodation places available for the 190,000 students studying in Vienna. Student numbers have also risen significantly in recent years and the proportion of international students in the city is particularly high, at 35 per cent. These factors currently make a powerful investment case.
“We’re delighted to have found such a competent and long-term investor as Union Investment for our second property in Vienna,” added Alexander Gulya, Managing Director of International Campus Austria. “Demand for high-quality student accommodation is set to remain strong in Vienna for the foreseeable future. With the city continuing to attract people, students from within Austria and beyond will struggle to find suitable apartments in central locations.”
“THE FIZZ Vienna main station” student apartment complex will consist of approximately 4,300 sq m of rental space. 190 of the 195 units will be standard apartments ranging from 21 to 22 sq m in size, with the remaining five being double apartments comprising 30 to 35 sq m. The fit-out of the rooms includes a designer bathroom, a kitchenette with microwave, refrigerator and ceramic hob, plus additional features geared to modern, practical living. The communal area boasts a 220 sq m lounge space which contains a cooking zone and movie area. A 90 sq m roof terrace, a music room and two separate study rooms round off the facilities.
“THE FIZZ Vienna main station” is the second acquisition for the portfolio of the Urban Living Nr. 1 special fund. It is also the second purchase in Austria. Another major operator of student housing is already represented in the fund via the Milestone Graz micro apartment complex, which comprises 378 apartments. Going forward, the intention is to expand the portfolio of Urban Living Nr. 1 by adding properties or projects in Germany, Austria and the Netherlands.
Regarding the transaction Union Investment was advised by Vavrovsky Heine Marth Rechtsanwälte (legal),TPA Horwath Wirtschaftstreuhand und Steuerberatung (legal) and Drees & Sommer. The vendor was advised by Cabjolsky + Partner (legal), Greyer & Greyer (tax) and HNP architects.
For Union Investment Institutional Property GmbH