Aviva Investors has made a strategic investment in a prime site designated for purpose-built student accommodation (PBSA) in Berlin, collaborating with investment manager and development partner Amro Partners. This investment is part of a dedicated platform focused on the German PBSA sector, which was launched in October of the previous year.
The Development Plan
The upcoming project is expected to provide 454 student beds, featuring a mix of fully furnished studios and shared apartments, each equipped with private bathrooms and kitchenettes. In addition to the living spaces, the development will boast numerous amenities, including a welcoming lobby, a fitness centre, study rooms, a cinema room, a landscaped courtyard, and a terrace, all designed to enhance the student living experience.
Strategic Significance
George Fraser-Harding, Head of European Real Estate Equity at Aviva Investors, expressed enthusiasm about extending their German PBSA platform alongside Amro Partners. He stated, “This reflects our ongoing commitment to delivering student housing in a market that is structurally undersupplied. Prenzlauer Berg is one of Berlin’s most vibrant and popular neighbourhoods, and we believe this scheme will offer high-quality accommodation while supporting robust investment outcomes for our investors.”
Location and Connectivity
The site is situated in the Prenzlauer Berg district, renowned for its rich culture, historic architecture, diverse cafés and restaurants, attractive parks, and lively public green spaces. This prime location benefits from excellent public transport links, including Berlin’s extensive tram network, S-Bahn Ring, and U-Bahn, providing easy access to the city’s leading higher education institutions.
Broader Implications for PBSA
Raj Kotecha, Chairman and Chief Executive of Amro Partners, noted that the acquisition represents a significant advancement in their German PBSA strategy. He highlighted that Berlin maintains strong demand fundamentals due to its world-class universities and international student appeal, coupled with a significant shortage of purpose-built student accommodation. This partnership with Aviva Investors allows Amro Partners to develop and operate a portfolio of high-quality, sustainable assets in key university markets across Germany.
This acquisition marks the second investment made in Berlin through their collaborative platform, following a previous acquisition in Charlottenburg, which is expected to create an approximately €60 million scheme comprising 200 student rooms. Additionally, in July, Aviva Investors financed two PBSA schemes in Valencia, further demonstrating their commitment to expanding their presence in the European student accommodation sector.