Tishman Speyer has completed the purchase of a student accommodation block in Vienna’s 3rd district. The property, located in the Erdberg neighbourhood, comprises 466 residential units.
The property, due for completion in 2024, is Tishman Speyer’s first acquisition for its TS Plus Europe fund. The investment objective of this open-ended European Core-Plus fund is to make institutional-grade investments in major European cities, initially focusing on residential and commercial property.
“The growing number of students in Vienna and the limited supply of accommodation built specifically for students make this property a compelling first investment for TS Plus Europe,” said Marc Pamin, Managing Director at Tishman Speyer. “The high-quality, sustainable design and the proximity to leading universities and life sciences institutions mean the property is ideally positioned to meet demand.”
The property at Karl-Farkas-Gasse 14 comprises 13,483 square metres of living space, as well as a restaurant, a café, office space and an underground car park with 32 parking spaces. It has 418 single rooms and 48 double rooms, designed for students and young professionals. Facilities include a 24-hour gym, a roof terrace, a communal kitchen, study rooms, a music room, a cinema and bicycle parking spaces.
The site is within walking distance of the Vienna BioCenter, one of Europe’s leading life sciences campuses, the Erdberg underground station (U3) and the Wien St. Marx S-Bahn station. Supermarkets, chemists, restaurants and childcare facilities are all located in the immediate vicinity.
The building, which is powered entirely by electricity, is heated and cooled using groundwater heat pumps, with the energy distributed via concrete core activation. A photovoltaic system covers the entire roof. The property is certified to the ÖGNI Gold sustainability standard.
Vienna has been ranked among the world’s most liveable cities for years and, with around 198,000 students, is one of Europe’s largest university cities. The city continues to attract both domestic and international students. Based on current market data, Tishman Speyer anticipates that rising enrolment figures and a limited supply of newly built student accommodation will provide sustained support for demand in this sector. There is no restriction on the property being occupied exclusively by students, meaning it is open to both students and young professionals.
This acquisition forms part of Tishman Speyer’s ongoing global diversification strategy, which prioritises investments across a broader range of asset classes and geographical regions.
Since making its first investments in the residential property sector in 1989, Tishman Speyer has acquired or developed around 30,000 rental flats and owner-occupied flats across four continents. A further 7,400 residential units are currently in the development pipeline.
The TS Plus Europe fund has received capital commitments totalling around 510 million euros. The corresponding US fund, TS Plus, managed by Tishman Speyer, has received capital commitments totalling 1.08 billion US dollars and has built up a portfolio of residential and commercial properties in the US.
The Austrian property firm EHL acted as an intermediary in the transaction.
