Germany: Developer GBI Group is expanding its SMARTments brand family with the addition of the SMARTments connect offer.
Described as apartment buildings that offer new opportunities for coworking and coliving, the real estate concept has been defined in detail and the company is building the first project of the new product line in the east of Frankfurt am Main. Several other locations in Germany and also Austria are under consideration.
Burak Ünver, managing director of SMARTments, said: “Our market analyses have shown that precisely this kind of accommodation offer is lacking in numerous cities. Young professionals have a particular need to get to know people in an uncomplicated way without having to forego having a private safe haven. To also get this combination at a reasonable price is especially important for this type of guests.”
The SMARTments connect concept offers options for different needs. In addition to the classic apartments, which have their own kitchens, units without kitchens are also offered. Their residents use one of the community kitchens instead. GBI says this can create a community that makes it easier to stay and settle in a new city.
“Especially after exciting adventure trips or exhausting days at work, guests can meet new, inspiring people while cooking and eating together. SMARTments connect enables casual communication and interaction,” said Ünver. Large coworking areas are also part of the community concept.
At the first SMARTments connect, in Frankfurt’s Borsigallee 9, a total of 128 serviced apartments will be built in the Seckbach district by the end of 2023, including six shared kitchens, one on each floor.
“Residents of the apartments with their own kitchens can also enjoy the experience of community cooking on the floor at any time,” said Ünver. “This alternative offer is ideal for locations where start-ups flourish or many young professionals are pushing into metropolitan areas, but hardly any classic apartments are offered. SMARTments connect ideally fills such gaps in the real estate structure of many cities.”
In terms of length of stay, there will be differences from GBI’s established SMARTments business brand, says Ünver: “While SMARTments business registers an average length of stay of more than one month, SMARTments connect is expected to have a significantly higher proportion of short- or medium-stay travellers.”
“The flexibilisation of the labour market will continue to accelerate,” said Simon Behr, managing director of GBI Group. “This offers opportunities for young concepts such as SMARTments connect, which take up current trends. For investors, these products with their broad application possibilities are very interesting.”
GBI says the new concept is finding favour with investors. The abrdn Investments Deutschland AG (abrdn) acquired SMARTments connect in Frankfurt, which is currently under construction, for a special real estate fund. “Our investment offers include a mix of promising properties in Germany. SMARTments connect is clearly one of them,” said Fabian Klingler, CEO of abrdn Investments Deutschland AG. “Such properties are actually becoming more and more in demand in major cities.”
GBI is a real estate developer focused on subsidised and privately financed apartments, hotels, serviced apartments, student housing and assisted living concepts under the SMARTments brand. Since its foundation in 2001, GBI has sold real estate projects in Germany and Austria worth more than €2.5 billion. GBI also operates serviced and student apartments itself under the SMARTments brand. GBI Capital, which is part of the GBI Group, bundles the areas of investment management, fund and asset management and subsidy consulting. GBI’s shareholder is the British private real estate fund manager Henderson Park.
