Press –  08/17/2023

Deutsche Investment Acquires Housing Estate of 75 Residential Units Centrally Located in Erfurt


Deutsche Investment just acquired a housing estate with a total lettable area of about 4,700 square metres in Erfurt. The acquisition was completed on behalf of the “Deutsche Investment – Wohnen M” special AIF.

The purely residential rental property has a total lettable area of around 4,700 square metres, which divides into 75 residential units and 98 parking spots. Virtually all of the units are occupied. The property was completed in 1997, and has a structurally sound building fabric.

“The property sits directly on the bank of the River Gera, just a short walk from the University of Erfurt. It comes with optimal access to public transportation while also having a number of shopping, recreational and nightlife options within walking distance. The Geraaue parklands directly next door were upgraded and redesigned as part of the urban development measures taken ahead of the 2021 Federal Horticultural Show, further enhancing the already excellent quality of the area. On top of that, the property is characterised by a diversified mix in regard to apartment sizes, and thus perfectly matches the demand criteria of tenant leads in Erfurt,” explained Tamay Demirel, Senior Transaction Manager of Deutsche Investment Kapitalverwaltung AG.

During the transaction, Deutsche Investment was advised on legal aspects by the law firm of GSK Stockmann, and in regard to the technical due diligences by CBRE. For HGA Capital Grundbesitz und Anlage GmbH, the selling party, JLL acted as estate agent. Legal counsel to the seller was provided by CMS Hasche Sigle.

The “Deutsche Investment – Wohnen V” separate asset pool represents an open-ended special AIF. It targets an investment volume of c. EUR 300 million. Its investment strategy focuses primarily on commitments in central locations of Germany’s “Big Seven” cities and selected fast-growth cities or regions. “Given the demographic trend forecast for the city, we consider this investment a successful expansion of the portfolio, whose regional allocation has so far focused primarily on Berlin and Düsseldorf,” added Gilbert Merz of the Principal Transaction Management at Deutsche Investment Kapitalverwaltung AG.