29 Mar Deutsche Asset One acquires 190 flats in Regensburg from Haupt Immobilien and Bucher Properties
Berlin, 12 March 2018
- Project development part of an extensive new urban quarter to be completed by 2020
- Acquisition as an off-market transaction for Deutscher Asset One-managed residential real estate fund of Union Investment and for Volksbank Raiffeisenbank Nordoberpfalz eG
- Dynamic market development in Regensburg thanks to consistent population growth
- €380 million of investment in Union Investment’s institutional residential real estate fund in the past 18 months
Deutsche Asset One, an asset and investment management service provider for residential real estate throughout Germany, has acquired a project development in Regensburg encompassing 190 flats. The deal was concluded as an off-market transaction for two of Union Investment’s Deutsche Asset One-managed institutional residential real estate funds, Residential Value Germany and Wohnen Deutschland Spezial. Some of the flats were also acquired for Volksbank Raiffeisenbank Nordoberpfalz eG based in Weiden.
The project was sold by a joint venture between two Munich-based project developers, Haupt Immobilien and Bucher Properties, who have joined forces to realise an urban quarter development encompassing 150,000 square metres of floor area in direct proximity to Regensburg’s old town. The first of three construction phases, which focuses on the centre of the urban quarter with around 20,000 square metres of rental area and roughly 300 part-ownership flats, is set to be completed in early 2019. The section of the project sold to Deutsche Asset One comprises part of the second construction phase. Construction of over 400 rental units is scheduled to begin in April 2018, with completion planned in 2020.
“With branches of several DAX-listed companies, Regensburg offers prime living and investment conditions with its historic old town and a student base of over 30,000,” Thilo von Stechow, Managing Partner of Deutsche Asset One, explains. “We are delighted to be able to realise a transaction of this volume as an off-market deal in such a popular location.” According to forecasts by the Bavarian Statistical Office, Regensburg’s population is set to rise by 15,000, or 10%, by 2035. Analysis from DG Hyp suggests that the university city in the Upper Palatinate region offers the highest economic performance out of all cities in Bavaria as well as the second-lowest rate of unemployment after Ingolstadt. Regensburg is also home to major sites of BMW and Continental, and so benefits from the strong automotive sector, the “Residential Markets in Automotive Cities” study published by VW Immobilien and Wüest Partner indicates. In addition, Krones AG employs several thousand people in Regensburg and is the city’s largest employer. However, rent growth for residential properties in Regensburg has been around one-third slower than average rent growth in Bavaria’s key regional areas over the past 10 years.
Over the past 18 months, Deutsche Asset One has acquired residential real estate worth a total of €380 million for the Residential Value Germany portfolio set up in 2016 and the Wohnen Deutschland Spezial portfolio established in 2017. All in all, these two Union Investment funds for institutional investors have invested a total target equity volume of €1 billion in residential real estate all over Germany. “Over the next few months, we want to build on our successful transactions and are therefore currently reviewing other potential transactions for both existing and planned residential real estate,” von Stechow adds. “We base this process on clearly defined location criteria, with which we have identified a clearly defined city portfolio throughout Germany.”
Deutsche Asset One GmH
c/o RUECKERCONSULT GmbH
Dr. Ulrich Nagel
Wallstraße 16, 10179 Berlin
p +49.30 28 44 987 – 63
About die Deutsche Asset One
Deutsche Asset One is part of Dupuis Investment- & Asset Management and focuses on providing investment and asset management services geared towards the German residential real estate market. Deutsche Asset One has no product portfolio of its own, rather concentrates on building up and managing the residential real estate portfolios of national and international investors – from real estate investment companies to financial intermediaries. Financial intermediaries include insurers, pension funds, schemes and associations, as well as securities deposits and foundations. Deutsche Asset One is an independent, owner-managed investment and asset management company offering its clients end-to-end real estate portfolio management in the style of a boutique investment firm. Investment volume for the years 2018-2019 stands at approximately 500 million euros. Investment properties include project developments and existing real estate upwards of 3 million euros in value and as a portfolio with up to 2,000 residential units. Deutsche Asset One / Dupuis Investment- & Asset Management currently manages one real estate fund worth some 1 bn euros.
image source: Dörnberg-Viertel Projekt GmbH & Co. KG / formstadt Architekten GmbH