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Domicil buys €252m German micro-apartment portfolio

One of the Hamburg properties.

Munich-based asset and portfolio manager Domicil Real Estate is paying over €252 million for the MikroQuartier portfolio of 13 properties, in what has been described as one of the largest deals so far in Germany’s micro-apartment segment.

Domicil has acquired the portfolio on behalf of Danish pension fund PFA and as part of its own portfolio. Twelve properties will be transferred to PFA’s German real estate portfolio, which is managed by Domicil. One building in Frankfurt is being purchased by Domicil on its own account.

A fund issued by AviaRent Invest sold the portfolio which has a total of 1,480 residential units and a leasable area of 42,000 sq m.

Portfolio is dispersed across nine German cities

The properties, which comprise a total of 1,480 units, are centrally located in Frankfurt am Main, Hamburg, Dieburg, Cologne-Deutz, Weimar, Munich, Hanover, Berlin and Bonn. The largest property in the portfolio is Hühnerposten apartment building in Hamburg which contains 353 units.

Hamburg holds the largest proportion of the portfolio, with a total of 479 units in three properties. Cologne-Deutz has two properties and 236 units, Frankfurt, with two buildings, has 203 units.

“The increasing mobility among young professionals and students will lead to high demand for temporary housing solutions in the future,” said Domicil CIO Andre Schmöller.” We are of course particularly pleased that we were able to realise one of the largest micro-apartment deals in German history,” he added.

The acquisitioni is PFA’s first investment in the micro-apartment sector. Domicil Real Estate AG is the asset and portfolio manager for PFA in Germany. Domicil was advised on legal aspects of the transaction by Jebens Mensching. Case Real Estate GmbH accompanied the purchase as a technical partner, with PWC acting as the tax advisor.