Capital Bay is in talks to buy two additional properties for its new German micro-living fund, the manager said today as it announced the acquisition of an apartment building in Munich.
The Berlin-based manager said it bought the asset from a joint venture between SEG Development and Bull Capital for 鈥渁 sum in mid-double-digit million euro range鈥�.
The new building comprises 331 serviced apartments with living space of between 18 and 33sqm.
Capital Bay鈥檚 new micro-living fund invests in student residences, serviced apartments and co-living properties all over Germany, and includes both residential and commercial concepts. The target volume is around 鈧�300m.
Christoph Gei脽ler, CIO of Capital Bay, said: 鈥淲e have taken a first major step in the growing micro-living market and will build on this in the long term.
鈥淭wo more properties in similarly attractive locations are currently in the purchase phase.鈥�
CB Micro Living will take over operations of the property on a long-term mandate and will begin letting the apartments in September this year.
Alexander Kersting, managing partner and director of CB Micro Living, said: 鈥淒emand for serviced apartments is extremely high in Munich 鈥� due to a short supply of small yet high-end homes. We, therefore, expect occupancy to be continuously high.鈥�
