Press –  09/27/2022

Deutsche Investment Acquires New-Build Construction Project of 180 Units in Dresden

Hamburg

Deutsche Investment just acquired the second construction stage of the MiKa-Quartier block development in the Mickten district of Dresden. The acquisition was completed on behalf of the “Deutsche Investment – Wohnen Deutschland I” institutional property fund.

MiKa-Quartier is a new-build construction project of developer and principal ATAL Development that is being created directly on the bank of the River Elbe in the district of Mickten close to downtown Dresden. It is currently the largest rental housing construction project in the state of Saxony. It will deliver around 900 residential units plus a number of commercial units in three construction stages.

The construction stage now sold to Deutsche Investment is the second one of these. On a site area of around 8,300 square metres, four multi-family houses with a combined total of 179 residential units and one commercial unit are under development. The apartments will have footprints of about 38 to 115 square metres, and will be ready for occupancy by November. “The city of Dresden has been gaining in international significance since the early zero years. Combining education, research, development and business, the city provides an excellent foundation for the successful growth of ‘Silicon Saxony.’ Human resources are another decisive factor in this equation. Companies like Bosch, Infineon and SAP need skilled professionals on the ground. And these, in turn, need residential accommodation of adequate liveability. The MiKa-Quartier urban block development by the city of Dresden convincingly addresses the demand for attractive housing for singles, couples, students and families,” elaborated Tamay Demirel, Transaction Manager for the Eastern Region at Deutsche Investment.

As far as the management of the properties goes, Deutsche Investment has a clear-cut strategy in place: to operate the properties as sustainably as possible and to permit their sustainable occupancy. Using AI-based building digitisation, Deutsche Investment ensures that energy in its various forms is employed efficiently.

“Virtually all technical installations inside the building will be connected to a central system that provides live consumption readings and automatically controls the installations on the basis of diverse data. For example, the heating systems in the buildings are automatically adjusted to the outdoor conditions by an AI-based system that integrates even the weather forecast so as to avoid unnecessary energy consumption,” elaborated Daniel Schreiner, the Principal ESG Asset Management at Deutsche Investment Kapitalverwaltung AG. “In addition, we sign green lease agreements with all of our tenants. These ‘green leases’ require lessees to reduce their emissions and waste, and to use resources like water and energy frugally. It creates a win-win situation for both sides: The tenant benefits from demonstrable cost savings and at the same time we jointly contribute to environmental protection and climate change mitigation.”

The “Deutsche Investment – Wohnen Deutschland I“ special property fund focuses on setting up a balanced real estate portfolio for residential rental purposes that focuses on investments across Germany. It targets an investment volume of c. EUR 300 million. “By acquiring this new-build construction project, we added an attractive asset to our portfolio that very much complies with our strategy. The letting process is fully under way. Among the factors that most appeal to our incoming tenants and tenant leads are the great riverside location, the convenient accessibility and the high building quality with its modern design, among other aspects. It is nice to see how investors and tenants are equally glad to see this accomplished new construction project take shape,” added Enver Büyükarslan, Director for Sales and Transaction Management of Deutsche Investment Kapitalverwaltung AG.