Dutch-German investment manager Primevest Capital Partners has purchased a newly constructed development of 47 subsidised apartments targeting the rent-controlled social sector in Aachen, Germany for a south German pension fund for €9 million from MERKUR Development Holding GmbH, the project’s developer and contractor.
Danica Cicmil, Fund & Acquisition Manager at Primevest Capital Partners, said: “Aachen is an important regional employment hub on the western border of North Rhine-Westphalia and the city’s current shortfall of modern affordable housing will rise in the future due to its growing population, particularly when rental subsidies for a substantial portion of this segment are withdrawn in 2027. These positive supply / demand market characteristics, combined with the low risk and secure income attributes of the asset make this latest acquisition an attractive proposition for our investors.”
The virtually fully-let residential complex is located on Drosselweg 17-25 to the southeast of Aachen’s city centre, which is a three-kilometre drive (30-minute walk) away, in a traditional residential area with many local amenities including shops, a school, kindergarten and children’s playground. A bus stop is located some 300 metres from the property and the Rothe Erde S-Bahn tram station lies 900 metres away.
The complex was completed in December 2020 and comprises five three-storey buildings with a mezzanine floor together with 38 residents’ parking spaces to the rear. The attractive one-to-four-room homes, with either a balcony, roof terrace or garden, range in size from 48 m² to 90 m² with an average size of 72 m². Heating is provided by an air-source heat pump and the apartments have underfloor heating and triple glazing.
The city of Aachen has taken 10-year leases on 10 apartments to accommodate refugees. The remainder are being let on rent-controlled contracts with 28 apartments capped at a maximum of €5.50/ m² per month and nine apartments at a maximum €6.45 / m².
Aachen is located close to the Belgian city of Lieges and the Dutch city of Maastricht to the west and Bonn and Cologne to the east. Its industries include engineering, sciences and IT and the city is home to several universities of applied sciences, of which Germany’s leading university of excellence RWTH (Rheinisch-Westfälische Technische Hochschule) is the best known.
Primevest Capital Partners was advised by REIUS Rechtsanwälte Partnerschaft mbB, Hamburg on legal matters and by Drees & Sommer, Stuttgart on technical matters. The seller was advised by HauckSchuchard, Frankfurt am Main.
About Primevest Capital Partners
Primevest Capital Partners is a pan-European investment boutique that specialises in innovative real estate and property investments. Due to the extensive industry knowledge with a focus on specialised investment sectors such as parking, telecommunications and affordable, contemporary living, Primevest Capital Partners has developed into a leading provider in these areas. Our top priority is to achieve attractive risk-adjusted returns for our customers. In doing so, we pay attention to sustainable income and value creation. Primevest Capital Partners currently manages assets of €1.8 billion, spread across six sector-specific funds and three individual institutional mandates. Primevest Capital Partners currently has 40 employees at its locations in Utrecht and Berlin.
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Primevest Capital Partners
About MERKUR Development Holding GmbH
MERKUR Development Holding GmbH, Rüsselsheim, acquires, develops and manages properties across Germany in the areas of commercial, residential, hotel and public real estate. Founded in 1936, the company was initially active as an asset manager and, after 1994, also as a project developer. Since then, it has specialised in land acquisition, planning and securing building rights, architectural designs, financing and construction project management.