Commerz Real capital-management company (Kapitalverwaltungsgesellschaft, KVG) has acquired an existing student residence with 244 units from the private
business university Frankfurt School of Finance & Management and will take it over as of January 2nd,
is planned, however, to demolish this building at the beginning of 2021
on the plot of land covering approx. 12,300 square metres at
Adickesallee 36–38 in the city’s Nordend-West
district and through to 2023 to erect a residential complex with 1,133
furnished serviced and student apartments on a leasable area of 39,000
square metres. According to details released by Commerz Real this is
currently the largest construction project of
its kind in Germany. To this end the company, which is a member of the
Commerzbank Group, has entered into a joint venture with the project
developer and administrator i Live, which specialises in smart living
concepts. The total investment volume amounts
to approx. 226.5 million euros. Following completion the property is to
be part of the two real estate funds “Commerz Real Institutional Smart
Living Fund” and “Commerz Real Smart Living Europe Fund”. This is the
first investment for the latter fund.
Of the 1,133 units 995 are student apartments. It is planned that 537 of them be publicly-subsidised or rent-capped housing. A further 458 student apartments and the 138 serviced apartments will be leased without any restrictions, meaning they can be leased not only to students but also to teaching staff and commuters, for example. “With the new development we can support the city and Frankfurt School of Finance & Management in providing as much housing as possible to meet people’s needs,” explains Johannes Anschott, a member of the board of management of Commerz Real. In total there are some 66,000 students in Frankfurt am Main, who make up about nine per cent of the city’s population. The number of students has risen sharply since 2010, by more than 20 per cent at the Goethe University and by more than 85 per cent at Frankfurt School of Finance & Management. At the same time the vacancy rate on the Frankfurt apartment market is less than 0.5 per cent.
The residential complex on Adickesallee will have an underground car park with 227 car parking spaces and 977 bicycle stands. Nearly 40 per cent of all the housing units will have a balcony. In addition, it is intended that all the tenants will be able to use a large lobby with a bar and a fitness studio. The plot of land is located right next to the campus of Frankfurt School; the Goethe University Frankfurt and Frankfurt University of Applied Sciences are just a five-minute bicycle ride away. Upon completion the i Live Group will assume responsibility for the leasing and property management. Commerz Real already works together with the company on two student apartment complexes in Darmstadt and Essen. “We are pleased that we are now commencing a third joint project with Commerz Real with the largest planned student and furnished serviced apartment project in Germany and that we are able to contribute our proven i Live operator concept,” says Amos Engelhardt, the managing partner of the i Live Group.
The open-ended special AIF (alternative investment fund) “Commerz Real Institutional Smart Living Europe Fund” is to develop a diversified portfolio of ten to 15 residential complexes in European university towns with a total volume of approx. 500 million euros. In this respect some 250 million euros are to be acquired from professional and semi-professional investors. It is planned to attain a BVI return of 4.5 per cent per annum. Further transactions are already planned for the coming weeks and months.
Source : Company