In September, Berlin-based Capital Bay GmbH contributed a portfolio of 756 flats in Hanover to the open-ended special AIF CB Wohnimmobilien Deutschland. The properties, which are valued at more than EUR 100 million, were purchased last year.
The almost fully let portfolio comprises 19 properties with a total area of more than 52,500 m² - around 87 per cent of which are available for residential purposes. It also includes 41 commercial units and 116 car parking spaces. Built between 1910 and 2004, most of the properties are located in central city districts.
The Hanover portfolio ideally complements the portfolio of the CB Residential Property Germany fund," says Christoph Geißler, CFO and CIO of CapitalBAY. "The capital of Lower Saxony is an attractive business location and offers a high quality of life. At the same time, the high demand is also driving up rents."
The continuing population growth is offset by an insufficient number of new project developments: Between 2013 and 2017, the state capital grew by around 17,300 to 541,800 people. However, according to the latest property market report by the Hannover Economic Development Corporation, only 3,855 new flats were completed in the same period.
The CB Wohnimmobilien Deutschland fund has a target volume of EUR 250 million and invests in residential properties in the top 7 metropolitan regions and in cities with more than 100,000 inhabitants that are experiencing sustainable growth. The fund already manages portfolios in Nuremberg and Dresden, among others. The managing capital management company is HANSAINVEST Hanseatische Investment-GmbH.
Markus Holzer, Managing Partner of CB Investment GmbH, says: "So far, the investors have exclusively been German institutional investors such as insurance companies and professional pension schemes. The appetite for regulated special property funds continues."