Catella Wohnen Europa (CWE), the German public open-ended real estate fund, has acquired 342 affordable apartments in the Pankow district of Berlin.
Financial details were not disclosed.
The assets extend over 16,400 m2 across four energy-efficient buildings and were purchased from a Hamburg-based family office.
Berlin-based Catella Residential Investment Management GmbH (CRIM) and Munich-based Catella Real Estate as alternative investment fund manager have acquired the property on behalf of the CWE fund. The buildings will be operationally managed by the BASE FOL Group.
The apartments are aimed mainly at families and young professionals and consist of 318 short-stay and long-stay co-living flats and 24 conventional residential units, as well as a day care centre, within two repurposed office buildings and two new builds.
All the apartments are equipped with the latest modern amenities and the buildings feature a variety of communal areas.
Benjamin Rüther, head of fund management CRIM, said: 'Catella has focused on two core societal and sustainability aspects in this investment. We decided to create a large co-living element in the project, which appeals to younger people, and also mix this with accommodation for families, to help social interaction and diversity, which is important for vibrant city living.
'Transforming the old office buildings on the site into residential units, instead of tearing them down and building from scratch, also means we make significant environmental gains through capturing ‘embodied carbon’ by reusing the concrete and other construction materials already in place.'
Optimisation measures to increase the energy efficiency of the buildings are a central feature of this project development.
An efficient heat supply via district heating is planned and by 2024, while renewable energy will be adopted throughout the project after the additional installation of PV panels.
Florian Färber, founder and CEO of The Base, said: 'Co-living has become increasingly important in recent years. Millenials in particular are increasingly opting for this form of living, which offers them maximum flexibility and community.
'At The Base, our focus is clearly on the community. We are not simply developing flats with design and comfort, but also want to create a social environment that offers tenants space to get to know each other to counteract loneliness in urban areas.
'We are very pleased to have Catella as a business partner who recognises the social importance of co-living.'
The property in Berlin-Pankow is the first building operated by The Base, whose future projects will focus on urban locations in Germany's top 15 cities and other European metropolises.
The seller was advised by Colliers International Deutschland GmbH on the transaction.