smartments is expanding its position in the German market for serviced apartments. This is being achieved through the takeover of operations for two properties in Berlin and Bielefeld under long-term lease agreements. The properties were acquired by M&G Real Estate. The transaction underscores the appeal and financial viability of the operator concept and signals the establishment of serviced apartments as an institutionally investable asset class.
The two properties comprise a total of over 400 apartments and approximately 14,500 square metres of gross floor area. With this addition, smartments' portfolio now includes 16 properties with 2,389 apartments in Germany and Austria. The property in Berlin will commence operations after an ESG-oriented repositioning, while the new build in Bielefeld opened in early 2026, thereby expanding the company's presence in an economically relevant location.
Growth and Investor Confidence
Jens Kindschuh, Managing Director of smartments, highlighted that M&G Real Estate's decision for a long-term partnership represents a confirmation of the business model. smartments focuses on standardised operations with high service quality, digital processes and defined ESG standards, which creates the conditions for stable partnerships between owners and operators. Founded in 2012, the company employs approximately 60 people, with over 50 per cent working in centralised functions at its Berlin headquarters.
The affiliation with Henderson Park, an international private equity investor, since November 2022 further strengthens smartments' market position. Together with its sister company Livory, which specialises in build-to-rent and serviced apartment projects, smartments covers the value chain from development to operation. Henderson Park contributes institutional capital strength to enable further growth.
Market Dynamics and Outlook
Demand for professionally managed serviced apartments is experiencing continuous growth. Companies are seeking flexible living solutions for project employees and business travellers, while investors prioritise resilient residential formats with stable returns. The Apartment Service Market Report 2026 indicates approximately 59,300 serviced apartment units in 1,160 properties for Germany, with a stable occupancy rate of 81 per cent in 2025.
- —Recent new openings include locations in Hamburg Hamm (August 2025) and Frankfurt Airport (end of 2025).
- —The segment is gaining significance in Europe: According to Savills European Serviced Apartment Report 2026, transactions totalling approximately 1.2 billion EUR were registered in 2025.
- —smartments is pursuing its growth trajectory together with institutional owners and development partners.
The company considers itself strategically well-positioned to continue this growth course, but exclusively with commitments that are economically viable in the long term and create sustainable value for all stakeholders.
