Nrep and aam2core acquire residential building in Cologne – first joint venture investment completed

Real estate investor Nrep and aam2core Holding AG have acquired the residential property “Project Meran” in Cologne-Ehrenfeld in an asset deal. This acquisition is the first investment for the joint venture that was founded by the two companies to pursue value added opportunities in the residential sector in Germany. The seller is a Swiss real estate investor and the parties have agreed not to disclose the purchase price.

The building was constructed in 1965 and is equipped with 83 residential units with an average size of 62 sqm. In addition, the property has significant development potential following the permission to create approximately 3,100 sqm of additional residential space.

Planned improvements include a comprehensive energy efficient refurbishment of the existing building to meet the KfW 55 EE energy efficiency standard. Vacant apartments will also be renovated and the development potential of the site will be maximised by new construction activities.

“With the acquisition of the ‘Meran’ project, we continue to implement our strategy of investing in sustainable residential assets with significant development potential. This acquisition underlines our ambition to become a leading investment and asset manager in the residential real estate market,” said Jens Ebert, Member of the Management Board at aam2core.

“By combining energy-efficient refurbishment with new development, we create long-term value for our investors and actively contribute to sustainable urban development in a tight housing market.” added Paul Hohenstatt, Head of Residential Investments at aam2core.

Nrep also sees significant potential in this acquisition. Björn Munte, Vice President of Nrep, commented: “This deal marks an important milestone for our entry into the German market. Our first joint investment with aam2core emphasises our shared commitment to the sustainable and efficient development of residential space and to unlocking its full potential. In aam2core we have found the ideal partner in Germany”.

The seller was advised by JLL who also facilitated the transaction.