AXA Investment Managers - Real Assets announces the acquisition of a 96-unit residential development scheme in Frankfurt

AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe⁽¹⁾, announces the acquisition of a 7,100 sqm residential development scheme in Frankfurt’s Gallus district, on behalf of its German residential fund, dedicated to professional investors only.

The purpose-built scheme will provide 96 residential units across three buildings, built on a 2,750 sqm site. The gross rental area of the completed property will be 7,100 sqm, 500 sqm of which will be Kindergarten space, and the apartments have an average size of 69 sqm ranging between 35-123 sqm. The three seven-storey buildings will also include 98 underground car parking spaces. Construction starts in Q2 2016 with full completion expected mid-2018.

Frankfurt, in the Rhein-Main region, is the fifth-largest city in Germany, and is home to one of the largest financial hub, and one of the largest airports, in continental Europe. The property is located between Mainzer Landstraße and Lahnstraße, in an improving inner-city area called Gallus. There are several major development projects either planned or underway in the surrounding area, strengthening the scope of opportunity associated with this investment. The urban location benefits from an abundance of local shops and amenities in the vicinity, with schools and transport infrastructure within easy reach of the property.

The completed property will be finished according to the latest sustainability standards underlining the importance placed by AXA IM - Real Assets on fully integrating sustainability into core development projects. Features to come as standard in each of the apartments will include underfloor heating throughout, parquet flooring in living areas and roller shutters in bedrooms.

Matthias Leube, Regional Head of Asset Management & Transactions, at AXA IM - Real Assets in Germany, commented: “This acquisition provides us with meaningful access to the residential market of one of Germany’s leading and most populated cities, and to the up-and-coming micro-location of Gallus in particular. Our ability to execute a city centre project of this scale and quality demonstrates the expertise of our local team in identifying value accretive development opportunities for the benefit of our clients.”