BNP Paribas REIM Germany acquires mixed-use asset

BNP Paribas REIM Germany acquires approximately 11,000 sqm mixed-use asset in Leipzig for its fund in an off-market deal.

BNP Paribas REIM Germany acquires a mixed-use asset in an off-market deal | PBSA News
BNP Paribas REIM Germany acquires a mixed-use asset in an off-market deal. Image credit: © Gateway Real Estate AG.

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) Germany acquires a mixed-use property in Leipzig for its European Impact Property Fund (EIPF). BNP Paribas REIM received legal advice from Linklaters during the acquisition, with Drees & Sommer acting as technical advisors.

The asset features 196 furnished student apartments, a university facility, and smaller office units totalling approximately 11,000 sqm of rental area. The apartments are located at Zschochersche Straße 69, Eduardstr 8 and 10 and Industriestraße 59. They are let to SMARTments student, which is operated by the non-profit FDS Foundation. The aim is to offer students furnished micro-apartments to stay at during their studies.

The asset also features 7,700 sqm of commercial space, which houses the Leipzig University of Applied Sciences (HTWK) research facilities. The remainder of the asset is composed of two office units let to other tenants.

The mixed-use property was built in 1996 and renovated in 2019 and 2020. BNP Paribas REIM plans to further upgrade the space in the coming years, with a focus on energy efficiency in line with the company’s ESG standards. Plans include reducing energy consumption by installing new LED lighting and a more efficient heating system.

The property has public transport links, including Leipzig central train station. Several universities and recreational offers, including Clara Zetkin Park, are also nearby.

“The building complex, which features a university as the main tenant along with modern student accommodation, is an extremely exciting, stable investment opportunity with long-term leases in place. The property’s location in Leipzig provides excellent access to the city centre and is expected to experience a favourable trend going forward, as is the city itself. It’s a great asset to add to the fund’s portfolio.

“Stock properties offer tremendous potential for reducing the carbon footprint. Improving a building’s energy efficiency makes an important contribution to climate protection and helps reduce operating costs. Energy upgrades are key when it comes to achieving climate targets. It’s the only way to noticeably reduce carbon footprint. The Leipzig asset holds tremendous potential for improving energy efficiency, making it perfect for our European Impact Property Fund.”

Isabella Chacon Troidl, Chief Investment Officer, BNP Paribas REIM Germany