smartments, a serviced apartment operator, has concluded a long-term lease agreement for 206 units in the planned Berlin quarter FORTY4 in Friedrichshain. The owner and developer of this project is a Berlin-based family office. Completion and opening of the apartments are scheduled for 2029. The new building’s location on Stralauer Allee is characterised by its immediate proximity to the Oberbaumbrücke, the East Side Gallery and Warschauer Straße.
Jens Kindschuh, Managing Director of smartments, highlighted the significance of the agreement in a statement. He emphasised that the location, the mix of uses and the quality of the quarter align with the company’s growth trajectory, and this step represents an important advancement in one of its core markets. smartments currently operates 16 locations with approximately 2,400 apartments in Germany and Austria and has been active in this segment for over a decade. Kindschuh also stated that while expansion is sought, it is not pursued at any cost; each new location must be based on a long-term viable business plan to meet the requirements of institutional investors. This approach is reinforced by the recent acquisition of two smartments-operated properties by M&G Real Estate.
The FORTY4 Quarter
The FORTY4 quarter on Stralauer Allee is designed as a mixed-use ensemble and comprises a gross floor area of around 41,000 square metres. It combines office space, residential units, hospitality offerings and gastronomy. The project consists of five buildings, which feature distinctive façades, green courtyards and terraces, creating an integrated environment for working, living and staying. The entire undertaking is being developed with a long-term investment horizon. The selection of smartments as the operator for the serviced apartments was based on the company's operational experience and its economically viable concept, which is intended to ensure the long-term establishment of this use within the quarter.
The Mediaspree location generates demand stemming from project business, relocation services and flexible lengths of stay. The planned serviced apartments range in size from 18 to just under 30 square metres. Each unit will feature its own kitchen and a workspace. Nearly all apartments are also equipped with a balcony or terrace. The offering is complemented by an approximately 300-square-metre lobby, providing spaces for communal activities and work, as well as a green inner courtyard.
Strategy and Expansion
Oliver Vinsant, Director of Development at smartments, described FORTY4 as an example of the locations the company seeks: central areas with clear demand, excellent transport links and a product for flexible lengths of stay. smartments plans to significantly expand its portfolio in the coming years and is currently reviewing further locations in Germany. The expansion focus is on Germany’s seven largest cities as well as selected secondary cities with strong economic power. The search primarily targets central locations with significant demand drivers and excellent public transport connectivity. The search profile includes properties with approximately 150 to 250 units, considering new builds as well as conversions and existing properties.
