Union Investment acquires serviced apartments new build from Corestate
• 86 serviced apartments for special fund Urban Living Nr. 1
• Let to operator STAYERY for 20 years
7 June 2022 I Author Astrid Lipsky I Reading time 1 minute
Union Investment has acquired the Kontorhaus am Wall property in Bremen’s historic old town. The project was recently completed and comprises 86 serviced apartments. These furnished apartments have cooking facilities for self-catering and are designed for longer stays of up to six months. The acquisition is being made on behalf of special real estate fund Urban Living Nr. 1. The vendor is the Corestate Group. The parties agreed not to disclose the purchase price.
“Bremen has relatively few long stay accommodation options, while there is attractive potential demand due to the number of businesses and research companies based in the area. The Kontorhaus am Wall micro-location is ideal for a long stay product. In addition to being within easy reach of the city centre and restaurants, it is also close to the main railway station and directly opposite Wallanlagen park, a green oasis in the heart of Bremen.”
Henrik von Bothmer, Functional Head of Investment Management Micro-Living at Union Investment
The apartments range in size from 22 to 41 sq m and benefit from spacious communal areas on the ground floor and two roof terraces. Union Investment has already let Kontorhaus am Wall to serviced apartment operator STAYERY for 20 years. STAYERY apartments offer a temporary home base with hotel-style services and are primarily aimed at young professionals.
“The new site in Bremen is a perfect fit with our expansion strategy, which is focused on the urban centres of German growth locations that have good tourism offerings,” said STAYERY managing director Hannibal DuMont Schütte. “In Union Investment, we also have an institutional partner whose commitment demonstrates the attractiveness of STAYERY as a concept and of serviced apartments in general as a property type in the current climate. This is a sound basis for ensuring that the new STAYERY in Bremen will be successful.”
Kontorhaus am Wall is the seventh acquisition for special fund Urban Living Nr. 1. The fund focuses on micro-apartments for different target groups and invests in newer existing properties and in selected development projects in Germany and other European countries.
Union Investment was advised on technical aspects of the transaction by C. P. H. Projekt- und Baumanagement and Arcadis, on legal aspects by lawyers GSK Stockmann and on tax matters by WATSON FARLEY & WILLIAMS. Berlin-based firm Apartmentservice Consulting carried out a market and location analysis for Union Investment.
The transaction was jointly brokered by Colliers Hotel of Berlin and Robert C. Spies of Bremen.
For Union Investment Institutional Property GmbH