24 October 2018
Union Investment acquires planned micro-apartment complex in Wiesbaden from developer GBI
Union Investment has acquired a planned micro-apartment complex in the immediate vicinity of Wiesbaden’s main railway station as part of a forward funding agreement. The vendor and project developer is the GBI Group. The residential property at Klingholzstraße 8 is scheduled for completion by the end of 2020. The scheme will deliver 107 micro apartments across six floors. The parties agreed not to disclose the purchase price.
Following on from acquisitions in Graz and Vienna, the micro-apartment complex in Wiesbaden is the third property to be added to the portfolio of special fund Urban Living Nr. 1, which was launched by Union Investment in 2017. The fund focuses on the micro-living segment, i.e. urban accommodation aimed at groups such as students, young professionals and long-distance commuters, in European markets and especially Germany. The micro-apartment complex in Wiesbaden is the first in the fund to be targeted primarily at young professionals and long-distance commuters. The location means that workplaces in Frankfurt am Main and in Mainz are within easy reach.
“The economy in and around Wiesbaden has been posting clear growth for years. Our forecasts indicate that this positive trend is likely to continue. This will attract a lot of young professionals and others engaged in project work – for example in the consulting sector, which has an exceptionally strong presence in Wiesbaden,” said Henrik von Bothmer, Investment Manager Micro-Living at Union Investment Real Estate GmbH. “All in all, this creates outstanding investment prospects for us, especially as there is currently no competition in Wiesbaden for this type of accommodation aimed at the specific target groups.” The site close to the central railway station is ideal for this purpose. “In addition to the excellent public transport links, the location features superb infrastructure,” commented Clemens Jung, Managing Director at GBI Wohnungsbau. Examples include the nearby Lilien Carré shopping centre and other local amenities. The casino and spa park are also within walking distance. “When planning the property, GBI also attached great importance to ensuring that the new building is worthy of one of the most important locations in the city. In doing so, we worked very closely with the municipal authorities and the city’s architectural advisory board,” said Clemens Jung.
The micro apartments in Wiesbaden have been designed in line with GBI’s SMARTments product family. The complex will comprise furnished 1 to 2-room apartments ranging in size from 30 to 50 square metres. Total rental space will be over 4,400 square metres, with parking for 107 cars also available.
The plot on Wiesbaden’s Klingholzstraße is part of a portfolio of former railway sites in five German cities acquired by GBI from Deutsche Bahn in 2017. Alongside Wiesbaden, the other sites are in Heidelberg, Mainz, Bonn and Bielefeld. “As in Wiesbaden, all the sites are located near the main railway station, making them highly attractive both for residential use and for hotel and serviced apartments projects due to the transport links,” explained Simon Behr, Director of Sales at GBI AG: “Central locations of this kind are few and far between in today’s real estate market.” GBI AG is Germany’s largest hotel developer and a leader in micro and serviced apartments.