Commerz Real Capital-Management Company (Kapitalverwaltungsgesellschaft
“Increasing numbers of students, the flexibilisation of the labour market and the rise in the number of single households are driving demand for micro-apartments across Europe,” says Johannes Anschott, the Commerz Real board member responsible for institutional business. According to figures released by UNESCO, the number of students worldwide has more than doubled since the start of the new millennium, and the OECD assumes this figure will quadruple in the period from 2000 to 2025. A wide risk spread is ensured through diversification with differing regions, operators and concepts, as well as through the planned portfolio size. The reference currency for the fund is the euro; in the case of transactions in other currencies it is intended to ensure currency hedging of approx. 90 per cent. Investment locations are established university cities and towns with attractive economic framework conditions, a high volume of commuters, and excess demand for student residences and micro-apartments. Moreover, as part of the investment decision process Commerz Real examines not only the operator and property quality, but also the possibility for third-party use and the micro-location. “Suitable prerequisites are excellent links to local and long-distance public transport, short distances to university campuses, urban life and city centres, as well as proximity to outlets for everyday commodities,” explains Anschott.
Commerz Real Institutional Smart Living Europe Fund is now the second special fund to be issued by Commerz Real in the student and micro-apartment segment. The predecessor product, Commerz Real Institutional Smart Living Fund, which was launched in 2016, focused on Germany and has been placed with equity capital of nearly 150 million euros in the meantime. “With the expansion to Europe we intend to offer our German professional and semi-professional investors the possibility to profit from the European outlook for this asset class, and in doing so to utilise our specialist know-how, says Anschott. “In the medium term we see considerable potential for an independent product class within our institutional portfolio.”
Source : Company