Germany: M&G Real Estate has acquired two serviced apartment assets in Berlin and Bielefeld for €73.5 million from developer Livory.
In Berlin, a newly refurbished scheme of 183 fully furnished apartments was completed in April. The asset has an EPC A rating and is targeting a BREEAM3 In-Use ‘Very Good’ certification.
The Bielefeld asset is a new development, featuring 221 fully furnished apartments and one commercial unit on the ground floor. It has been fully operational since February 2026.
Both schemes will be leased on a 20-year term to Livory’s sister company smartments.
Simon Behr, managing director at Livory, said: “This transaction confirms institutional demand for modern, high-performing serviced apartment products in Germany. Livory’s expertise in the conception and development of assets with high-quality standards, clear ESG credentials, and prime locations were a key factor for the transaction; and lay a solid foundation for the future performance of the properties.”
Simon Ellis, manager of the M&G European Property Fund at M&G Real Estate, added: “This transaction marks our debut into serviced apartments – a sector which is gaining strong momentum across Europe, and particularly in Germany, supported by catch-up potential, solid performance and rising investor interest. Despite this momentum, the sector remains structurally undersupplied, offering an attractive opportunity for investors to tap into a still relatively small but expanding segment of the living and hospitality market across Europe’s key gateway cities. Both cities present compelling fundamentals, underpinned by supply demand imbalances, strong rental dynamics and solid occupancy levels, supporting the serviced apartments sector’s long term growth prospects.”
Highlights:
- M&G Real Estate has made its first serviced apartment investment with the acquisition of two German assets in Berlin and Bielefeld for €73.5 million from developer Livory.
- The Berlin property comprises 183 fully furnished serviced apartments, completed in April, with an EPC A rating and a targeted BREEAM In-Use ‘Very Good’ certification.
- The Bielefeld development features 221 fully furnished apartments and one ground-floor commercial unit and has been fully operational since February 2026.
- Both serviced apartment assets are leased to smartments, Livory’s sister company, under long-term 20-year operating agreements.