Schultheiß Affordable Housing Portfolio

© Schultheiß

PIMCO Prime Real Estate acquired this three-asset, 300-unit portfolio in early 2021 in a forward deal from a specialist regional developer. Nuremberg’s acute demand-supply imbalance, evidenced by a waiting list several thousand people long, underscored the urgency and relevance of this investment.

For PIMCO Prime, it was an opportunity to both diverse our client’s portfolio into a highly regulated and niche, structurally resilient sub‑sector of residential, and support their desire to make a meaningful social contribution.

The assets are located in a well-connected residential neighborhood in Nuremberg. Working with the developer, we added enhancements to the initial designs, e.g. higher quality flooring, balcony lighting, to reduce differences in appearance between the units of this portfolio and free-market buildings. We also planned for instant capex investments for the first year post completion which would enable tenants to benefit from lower energy consumption and therefore lower costs. This included the installation of smart meters and photovoltaic panels.

Delivered in 2023 and fully let, this investment underlines the flexible and tailored approach we incorporate into our clients’ portfolios alongside our core and develop-to-core expertise in managing long-term, resilience-based assets.