- Building project for hausinvest with 146 apartments, 113 of which are subsidized and 33 with reduced rent
- Purchase price of 49.6 million euros, with completion planned for the end of 2021
- Wertgrund to take over rental and portfolio management
Munich, January 10, 2020 – Commerz Real and Wertgrund Immobilien have acquired from Isaria Wohnbau an as yet unfinished residential building in “Diamaltpark” for approximately 49.6 million euros. Completion is planned for the end of 2021. After that point, the roughly 10,700 square meters of rental space spread over 146 apartments will be added to hausInvest’s open-ended real estate fund. Wertgrund will then take over rental and portfolio management. “Diamaltpark” is a new quarter with a total plot size of approximately 79,000 square meters on which Isaria is developing and building 721 residential units. The site is the now-defunct premises of Diamalt AG, a former foodstuffs factory in the Allach-Untermenzing district, north-west of central Munich. Three historic buildings on the site have been retained, and a 1.5-hectare park laid out.
“We will be able to offer affordable living space, especially for families, in a high-demand urban location,” says Mario Schüt-tauf, funds manager for hausInvest. Of the 146 apartments the building project acquired by Commerz Real and Wertgrund Immobilien encompasses, 113 will be subsidized according to income, and 33 will feature reduced rent according to Munich’s model for renters. The two public housing programs bind the landlord for several years to a capped maximum rent on apartments only awarded to qualifying tenants. 118 of the apartments feature balconies or terraces. Two communal roof terraces and a parking garage with 94 spaces are also planned. Essential businesses, S-Bahn commuter train stations, and bus stations are all within walking distance, and Munich’s central station is 15 minutes away by S-Bahn train. “After great success in currently ongoing individual sales, these attractively located residential units have enabled us to sell a complete construction field in Diamaltpark off plan for the first time”, says Sven Graven, head of transaction at Isaria Wohnbau.
For Commerz Real and Wertgrund, this is the second acquisition of newly constructed residential units in Munich after that of the “Nockherberg NOC 2.4” complex, and the fourth in Germany since their collaboration began in April 2019. Commerz Real also recently acquired three existing properties in Munich’s Allach-Untermenzing, Schwabing-West, and Glockenbachviertel neighborhoods as part of the so-called “millennium portfolio” of the former Generali Lebensversicherung. Additionally, in early December, the asset and investment manager acquired the nearly 15-hectare “Am Tucherpark” district from the bank Hypovereinsbank, where it plans to build subsidized housing, among other things. hausInvest, Germany’s second-largest open-ended real estate fund, has medium-term plans to invest about 10 to 20 percent of its more than 15 billion euros in capital in residential properties.
Commerz Real consulted Greenberg Traurig Germany for legal advice during the transaction and Munich-based SMV Bausteuerung Ingenieurgesellschaft for technical matters. Isaria Wohnbau received legal counsel from the law offices of Hermann & Kollegen Rechtsanwälte. The brokerage company BGA Invest, headquartered in Munich, brokered the transaction.
Commerz Real, member of the Commerzbank Group, has over 45 years of market experience and manages a volume of over 33 billion euros. They combined their comprehensive expertise in asset management and their extensive know-how in structuring with their characteristic range of services, comprising asset-oriented fund products and individual financial solutions. Their fund spectrum includes open-ended real estate fund hausInvest, institutional investment products and company shareholdings of the CFB Invest brand with asset investments in the critical segments of aircraft, renewable energies, and real estate. As the leasing company of the Commerzbank Group, Commerz Real also offers customized equipment leasing concepts and individual financial structuring for assets such as real estate, large assets, and infrastructure projects. www.commerzreal.com
WERTGRUND Immobilien AG is an investment and management company for residential properties in Germany with its headquarters in Munich. WERTGRUND Immobilien AG offers its institutional and private clients the full spectrum of residential property services, from investments and transaction support to project development, asset management, administration, leasing and lease management, and tenant privatization.
ISARIA Wohnbau AG is one of the leading project developers for residential construction in Munich. The range of projects it has completed includes multi-story apartment blocks, district developments and the regeneration of buildings previously used for commercial purposes. ISARIA Wohnbau AG, with its 90-some employees, can now offer residential properties to meet the requirements of a wide range of target groups. The company has 20 years of experience along the entire project development value chain, including proven skills in obtaining construction rights. Based on its strong market position in Munich, ISARIA Wohnbau AG has successively expanded its activities in recent years to further regions with projects in the greater Munich area, as well as in Hamburg, Stuttgart, and Frankfurt am Main. The company’s project pipeline has a current planned sales volume of more than EUR 2.9 billion.
Information about the company: www.isaria.ag
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