Germany: NREP has made its first real estate investment in Germany and formed a team of eight in the country.
Two offices have been opened, in Frankfurt and Munich, completing the existing on-the-ground presence consisting of the German real estate credit specialist acquired by NREP last year.
With a plan to invest around €500 million over the next three years, NREP will pursue opportunities mainly within the company’s two largest and longstanding real estate strategies, modern logistics and customer-centric rental housing.
The company says there is a clear housing shortage throughout many of Germany’s largest cities, while the need for high-quality homes is rising.
Rune Kock, real estate CEO at NREP, said: “Germany has Europe’s strongest economy and presents clear trends of urbanization, which makes it particularly receptive to NREP’s expertise in improving the built environment of cities. We have capabilities to create more customer-oriented products and implement ESG initiatives more broadly, which has proved a successful approach when expanding into new Northern European territories.”
For its debut German investment, NREP has entered a long-term joint venture with Artisa Group, a Swiss real estate developer operating across European markets. The joint venture plans to deliver 5,000 coliving apartments by 2025, and the first investment is an acquisition of two coliving assets offering a total of 314 individual apartments.
One of the assets located in proximity to the new business district Mediaspree in Berlin, will be DNGB Gold certified once completed in 2024. The second property comprises a standing office-to-residential conversion in Essen, which is currently undergoing light refurbishment while already being in operation.
The buildings’ sustainability performance will continuously be improved through their life cycle, and further initiatives include exploring new methods for construction materials and ways of enabling more conscious consumer behaviour through digital tools.
The joint venture has a strong pipeline, including immediate opportunities comprising 670 units in Frankfurt. All properties will be operated under Artisa’s coliving platform, City Pop, offering fully furnished apartments with attractive communal facilities on flexible lease terms.
Alain Artioli, president of Artisa Group, said: “The undersupplied housing sector in Germany is partly driven by having one of the highest shares of single households in Europe, which is expected to further increase to 44 per cent by 2035. CityPop’s consumer-orientated concept is enhanced by a digital app, with significant emphasis placed on resident events and activities to create a strong sense of community, connectedness and social interaction. Each building offers vibrant living spaces alongside a comprehensive suite of on-demand services and facilities, with convenient access to public transportation.”
