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Savills IM Acquires Mixed-use Project Development Near Karlsruhe

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Savills Investment Management has acquired a project development with residential and food retail space near Karlsruhe, the third-largest city of the German state of Baden-Württemberg for an open-ended special fund.

Both sectors are key focuses of Savills IM’s investment strategies due to their resilience and strong fundamentals,. This was an off-market transaction with the Krause group of companies from Bayreuth. The property is part of an inner-city neighbourhood development and comprises a total of around 8,000 sqm of rental space. The parties have agreed not to disclose the purchase price. Savills IM was advised on the technical side of the transaction by KVL Solutions, which had also previously accompanied the construction phase.

The brownfield development comprises two buildings, completed earlier this year. The retail space is fully let to Edeka and Lidl on long-term leases. The upper floors consist of modern flats with fitted kitchens, which were almost fully let during the project phase. Both properties meet high ESG standards. The air-to-water heat pumps are powered by photovoltaics, and the roof areas are also greened. The site also includes approximately 110 bicycle parking spaces, three e-charging stations for electric vehicles, and pre-installations for further e-charging stations.

Revaluations across property markets are opening up attractive opportunities.

Savills IM’s growth strategy provides for increased involvement in the European residential sector. Following acquisitions in Sweden and Spain last year, Savills IM recently acquired a residential property with 61 residential units and around 4,400 square metres of total usable space in the Netherlands. Savills IM’s focus is on modern, sustainable residential property in key European regions with strong fundamentals, with Germany being one of the core investment markets.

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The current investment in Baden-Württemberg aligns with this strategy. The district of Rastatt, where the property is located, has a population of over 200,000. With positive demographic trends expected to continue, the housing demand gap and the low vacancy rates are likely to maintain upward pressure on residential space.

Gerhard Lehner, Head of Germany at Savills IM, says: “We are continuing to drive the expansion of our residential platform. Our focus is on residential property in pan-European markets with high potential, driven by sustainable fundamentals and strong resilience. We have extensive expertise in the residential sector across Europe and aim to significantly increase assets under management in this sector over the next few years. Institutional investors benefit from stable returns while also supporting the provision of much-needed housing, which is of great social importance and contributes to important ESG goals.”

Tim Ulrich MRICS, Head of Transaction Management Germany at Savills IM, adds: “Revaluations across property markets are opening up attractive opportunities.

“Even though the market environment for real estate investments remains challenging, we are actively exploring the market for investment opportunities for our funds and mandates – particularly in Germany, focusing on residential properties in cities with positive economic and demographic trends, distribution centres, urban transshipment halls and light industrial properties as well as dominant and high-quality neighbourhood centres.”

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Staff Reporter

FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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  • Final Logo

    FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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