Deutsche Real Estate Funds (DREF) is launching the second phase of the conversion work on the student residences in Berlin, Bremen and Stuttgart which it acquired in the course of its bond issue in June. The cost of the modernisation work will be just under five million euros. Almost 500 modern ensuite units are to be created in central locations. After the renovation work Jones Lang LaSalle (JLL) values the Stuttgart property at 11.1 million euros. In the prospectus for the bond DREF had forecast 8.6 million euros.
“We’re delighted that our extensive modernisation measures and the selection of centrally located student residences in popular German university cities are reflected in the valuation. It also shows us that our assessment of the initial loan-to-value ratio was realistic to conservative,” states Felix Bauer,
Chief Executive Officer of Deutsche Real Estate Funds Advisor (DREFA). “Over the years student living requirements have changed significantly. Today most students, for example, wish to have their own bathroom. However, the majority of students can’t afford such premises in a central location in many German university cities any more. For this reason there is a need for private investors who can become involved with the necessary capital and know-how.”
The second phase of the conversion work has begun – 500 new residential units planned
After the planning and modernisation of the general facilities, the second phase of the conversion work, in which the rooms themselves will be renovated, has now begun in Berlin, Bremen and Stuttgart. In Stuttgart 100 residential units without a bathroom are being converted into 144 ensuite units, in other words rooms with their own bathroom. For this purpose DREF is using space which was previously planned for other facilities or was unoccupied. More than 300 ensuite units will be created in the three student residences in Bremen and Berlin. The first students will be able to move in as early as the coming winter term.
In Kiel conversion work will begin at the end of the year. There 110 ensuite units are to be created – from the original 84 units without their own bathroom. On the site, DREF is also planning a new building with 150 units. Overall, there are plans for 500 additional residential units in new buildings on the sites of the student residences from the bond portfolio.
High standards of design and sustainability
In many student residence projects DREF is not just modernising the interior but is also completely redesigning the external facade. DREF is also setting high standards in relation to the design, sustainability and energy footprint of the student residences. A further priority for DREF is ensuring that the students feel at home in their residences. In order to create the right look and feel DREF works with the award-winning architect Paul McAneary. He is one of London’s most prestigious architects with a reputation for sustainable and ecological construction. McAneary will support DREF above all in the design and branding of the student residences. Together with the architectural firm of Fromm he is already working on a number of DREF properties.
“We’re delighted that we have been able to recruit this top architect for our projects. The majority of student residences from the 1970s are classical functional buildings which were constructed without a great deal of inspiration. Together with Paul McAneary we aim to show that even such student residences can feature an attractive design without having to make allowances in terms of their functionality or energy footprint,” comments Felix Bauer.
Paul McAneary has won a number of UK Property Awards, Design Awards and SBID Awards. As an architect he is certified by the Royal Institute of British Architects.