Deutsche Investment has successfully acquired the ‘Sunrise’ residential portfolio in Leipzig. The portfolio comprises a total of nine apartment blocks built between 1900 and 1911, with a total lettable area of around 7,298 m². These are divided into 109 residential units and four commercial units.
The properties are situated in established residential areas within Leipzig and benefit from good links to public transport, as well as proximity to local recreational areas and social infrastructure. The micro-locations are characterised by solid demand and stable residential environments. The majority of the flats range in size from 40 m² to 90 m², thereby appealing to a broad target group in the housing market.
The portfolio meets the client’s acquisition criteria and aligns with Deutsche Investment’s investment strategy, which focuses on high-growth B-cities such as Leipzig. Given the locations, the condition of the buildings and the letting situation, the aim is to make a stable contribution to the portfolio’s performance.
The acquisition underscores the long-term investment approach and the sound structure of the transaction. “With the purchase of selected properties from the ‘Sunrise’ portfolio, we are securing a substantially sound residential investment in sought-after micro-locations in Leipzig, which fit seamlessly into the existing portfolio of the individual client. The combination of a stable letting situation, long-term tenancies and further potential for optimisation fits perfectly with our active acquisition strategy.”, says Tamay Demirel, Senior Transaction Manager at Deutsche Investment.
“Leipzig has been impressing for years with its strong economic dynamism, continuous population growth and robust demand for housing. Against this backdrop, we regard the city as one of the most attractive residential
investment locations in Germany. The portfolio specifically complements our existing portfolio with further properties in established micro-locations and supports our aim of generating stable long-term returns and
sustainable value growth for our investors.”, adds Gilbert Merz, Head of Transaction Management at Deutsche Investment.
In connection with the transaction, Deutsche Investment was advised on legal matters by Arnecke Sibeth Dabelstein and, with regard to the technical valuation, by EY Real Estate GmbH. Wüest Partner acted as the valuer.
