PATRIZIA acquires new building project with 74 residential units in Leipzig
PATRIZIA Immobilien AG has completed the acquisition of Residenz am Waldplatz in Leipzig. The site has been acquired for the development of six residential towers for 74 units in the Centre-West district, due for completion in the middle of 2018.
“Leipzig has become an important financial and business hub in Germany, with one of the strongest local economies in the eastern German Länder, and an increasingly dynamic and popular cultural and leisure offer,” comments Johannes Altmayr, Head of Residential Transactions at PATRIZIA. The acquisition is being directly carried out by the project developer, CG Gruppe AG, for a real estate fund managed by PATRIZIA.
PATRIZIA plans to create six two to five storey buildings, for the development of 74 two to five- room residential units designed specifically for the private rental sector, totalling 7,800 sq m. The scheme is made up of four multi-family houses in Friedrich-Ebert-Straße where there are 68 two to five-room flats furnished to a high standard having between 42 and 114 sq m of space. On the rear side of the scheme, two new buildings with three spacious three to five-room flats each measuring between 98 and 129 sq m of space are being constructed. There will also be an underground car parking for up to 70 cars, as well as three retail units across.
Located a few minutes from the city centre, Residenz am Waldplatz is situated in the popular Bach District of Lepizig, considered one of the most desirable residential areas due to the excellent local and national transport links, large number of parks and green areas as well as cultural and leisure-time opportunities.
An important centre of economic activity that offers good residential investment opportunities, Leipzig has grown in popularity over recent years with a growing imbalance between the supply and the demand for good quality central accommodation. It is anticipated that, as a result of ongoing population growth, rising quality demands and Leipzig’s shortage of high quality accommodation due to the legacy of the East German era and the subsequent over supply of low-quality residential space, around 2,200 flats per year will need to be created up until 2025 in order to meet demand.