Deutsche Real Estate Funds (DREF) has invested 鈧�85m in a German student housing portfolio.
The company bought the assets through Engel & V枚lkers Investment Consulting (EVIC), mandated by DREF to invest up to 鈧�200m in the sector.
Felix Bauer, DREF chief executive, said the company aimed to double its portfolio by the end of this year and had a 鈥渟ubstantial pipeline of projects鈥�.
EVIC will prepare and purchase properties with a value of up to 鈧�200m.
Berlin, Bremen, Kiel, Stuttgart, Bochum and Essen are being targeted for investment.
Kai Wolfram, managing shareholder at EVIC, said the market for student housing 鈥渞eally took off鈥� in 2015.
鈥淚t is gradually becoming increasingly difficult to acquire good-quality buildings in central locations at reasonable prices,鈥� he added.
DREF, which builds, acquires, refurbishes and manages student residences under the TWENTY FIRST brand, is majority owned by the Bauer Group.
Internos Global Investors and family office Somerston Group hold a combined 27.5%.
