AXA Investment Managers - Real Assets has agreed to acquire a residential development scheme in Erfurt, Germany, for 鈧�30 mln, on behalf of a German residential fund restricted to professional investors.
The purpose-built asset will provide 137 residential units in eight buildings and is being constructed by a local developer who will be responsible for marketing and letting the units. The 11,500 m2 property will have 117 underground car parking spaces. Construction is expected to start in Q2 2016 with completion targeted for end-2018.
鈥楪erman residential is much sought after by investors due to the highly visible and stable cash flows that it generates and we believe that the forward purchase of product at the development stage provides an attractively priced entry point into this asset class,鈥� commented Matthias Leube, regional head of asset management and transactions at AXA IM - Real Assets in Germany.
