06 March 2019
Union Investment acquires planned micro-apartment complex in Dresden
Union Investment has agreed to acquire a planned micro-apartment complex in the east of Dresden’s historic city centre. The complex at Grunaer Straße 20 is scheduled for completion at the end of 2019 and will comprise 170 micro-apartments across a total rental area of 6,000 sq m. The vendor and developer is Grundstein Bauträger GmbH. The purchase price was not disclosed. Union Investment was advised by GSK Stockmann + Kollegen and ES EnviroSustain during the due diligence process. The vendor was advised on commercial aspects of the transaction by BREIM GmbH, with law firm Knauthe providing legal advice.
The temporary living concept being implemented at the micro-location is geared primarily towards long-distance commuters and project-based staff, such as international specialists. The apartments are also expected to be used by young professionals and students. The planned micro-apartment complex in Dresden is the fourth acquisition for special fund Urban Living Nr. 1. The fund focuses on the micro-living segment in urban areas of Europe and especially Germany. In addition to Dresden, the fund is already invested in Wiesbaden, Vienna and Graz, with further growth planned.
“The central location in the east of Dresden’s old town is ideal for micro-apartments designed for temporary use. We are therefore confident that this area will provide a high degree of investment security going forward,” said Henrik von Bothmer, Investment Manager Micro-Living at Union Investment Real Estate GmbH. “As Dresden is a city of major economic significance for the entire region, it attracts a very high number of long-distance commuters. The new complex is specifically designed to appeal to this target group.”
The 170 micro-apartments in the new development will benefit from some 100 parking spaces. The building will comprise one- and two-room apartments measuring between 23 and 44 sq m. Loggias, terraces and French balconies are planned, as is a green outdoor area. The location close to the inner old town and Dresden’s main railway station is also within easy reach of major employers. Volkswagen’s Transparent Factory is just a few minutes’ walk away from Grunaer Straße 20, for example.
The acquisition of the planned micro-apartment complex was Union Investment’s second transaction in Dresden in 2018. In the autumn, the Hamburg-based real estate investment manager also acquired a planned Super 8 hotel at Antonstraße 43 in the Innere Neustadt district on the northern side of the river Elbe for its immofonds 1. Union Investment’s commercial real estate holdings in Dresden include two other hotels and a retail-focused mixed-use property at Prager Straße 7.