PBSA · Mannheim · Growth Capital · F7 5–13, 68159 Mannheim · 180–191 Student Rooms · Pre-Planning April 2026 · 10.6% Germany PBSA CAGR · ~100,000 Students · 5 Universities · Adaptive Reuse · DGNB Certified Developer · Dry Capital · Confidential Teaser      PBSA · Mannheim · Growth Capital · F7 5–13, 68159 Mannheim · 180–191 Student Rooms · Pre-Planning April 2026 · 10.6% Germany PBSA CAGR · ~100,000 Students · 5 Universities · Adaptive Reuse · DGNB Certified Developer · Dry Capital · Confidential Teaser
Market Comps Location Project Plans Design Deal Dry Capital Sponsor DD Contact
PBSA · Adaptive Reuse · Growth Capital

Mercure Hotel
into
Student Living

F7 5–13 · 68159 Mannheim · Germany
180–191 student rooms · First institutional PBSA in the city
Active Pre-Planning
Introduced by Dry Capital
Student Rooms
0
Max capacity
Students · Mannheim
~100K
5 institutions
PBSA Coverage
~3%
State beds only
Market CAGR
10.6%
Germany PBSA 25–30
Modern student accommodation
Students studying
Student communal space
Mannheim · F7 5–13 · 68159
01

Structural Demand Gap

Germany has 3.1M+ students and under 250,000 purpose-built beds — a 1:12 ratio. Mannheim's ~100,000 students are served by only ~3,000 state-managed rooms. Private PBSA is virtually absent.

02

De-Risked Conversion

Existing 4-star hotel structure eliminates greenfield risk. Foundations, MEP infrastructure, and planning baseline already in place — reducing time and capital at risk versus new-build.

03

Early-Cycle Entry

Germany's PBSA market is 15–20 years behind the UK. Entering now — before institutional cap-rate compression — secures development yields with a clear path to core exit at 3.5–4.5%.

Students studying
Student community
Modern student accommodation
Modern amenities
Student communal space
City-centre living
Macro Market

Germany PBSA —
Structurally Under-Built

At sub-8% institutional penetration, Germany is among the least developed PBSA markets in Western Europe — while hosting the continent's largest student population. The gap is structural, not cyclical.

Market size
€2.4B
Germany PBSA 2025 · Projected €4.0B by 2030
CAGR 2025–2030
10.57%
Students in Germany
3.1M+
PBSA beds available
<250,000
Institutional penetration
<8%
UK at same stage
~2005
Comparable transaction: Greykite launched a €250M fund in 2024 specifically buying vacant German hotels for PBSA conversion — validating this exact playbook.
PBSA penetration · beds per student

Senior debt sourced by Dry Capital from German construction lenders and/or specialist PBSA debt funds at 50% LTV. No mezzanine tranche — equity gap closed by LP equity. GP seed contributed by 3iPro.

🇬🇧
United Kingdom
38%
🇳🇱
Netherlands
25%
🇮🇪
Ireland
20%
🇫🇷
France
16%
🇩🇪
Germany
~8%
The gap = the opportunity. Germany's low penetration is a function of regulatory complexity and developer inertia — not absence of demand. It is closing rapidly.
3.1M+
Students in Germany
<250K
PBSA Beds Available
10.6%
CAGR 2025–2030
Market Liquidity

Europe's Most Active
Living Sector — 2025

PBSA is now the single largest category of direct real estate investment in EMEA — not logistics, not offices. Institutional capital has rotated decisively into living. Germany is the last major market where entry yields remain compelling.

YoY Volume Growth
+76%
EMEA PBSA transactions · 2025
Share of EMEA RE Investment
30%
Living sector — #1 asset class · 2024 & 2025
Average Occupancy
96%
Pan-European PBSA stabilised assets
Rental Growth (2025)
+3.1%
Above CPI — contractual escalators in place
Notable Comparable Transactions
🇩🇪 Greykite — Germany
€250M fund · hotel conversions
🇬🇧 Blackstone / iQ — UK
€4.6B portfolio · 28,800 beds
🇳🇱 Patrizia — Netherlands
€380M forward-funded · Amsterdam
🇩🇪 CBRE Investment — Frankfurt
€95M stabilised portfolio · 4.6% NIY
🇪🇸 Livensa Living — Europe-wide
18,000+ beds · CPP-backed · active in DE
🇫🇷 Stoneweg — Continental EU
€650M student housing AUM
Germany milestone: Continental Europe exceeded UK PBSA investment volumes for the first time in 2025 — up 65% YoY. The pipeline is moving to Germany.
Cap Rate Comparison · PBSA 2025

Germany's PBSA yields are 80–120bps above mature markets. Development yields in the right location can reach 6–7%. That gap represents the institutional entry premium — and it is compressing.

🇬🇧
United Kingdom
3.5–4.5%
🇳🇱
Netherlands
3.8–4.8%
🇫🇷
France
4.0–5.0%
🇩🇪
Germany
4.5–5.5%
🇩🇪
Dev yield (DE)
6–7%
PATRIZIA Student City Index — Top Markets
🥇 London 🥈 Paris 🥉 Berlin 📈 Frankfurt 🚀 Munich 📌 Mannheim
Baden-Württemberg universities rank among Germany's most in-demand. Mannheim's first institutional PBSA scheme enters a white space with no direct competition.
+76%
EMEA PBSA Volume Growth · 2025
1st time
Continental EU exceeded UK in 2025
+120bps
Germany yield premium vs UK
Micro Location

Mannheim F-Quadrant

Mannheim's famous grid plan gives every city-centre block a precise address. F7 sits at the geometric core — pedestrian zone, steps from every transit node, within walking distance of five universities.

Distances from F7 5–13
🚉 Mannheim Hauptbahnhof
5 minwalk
🎓 Universität Mannheim
8 minwalk
🏫 Hochschule Mannheim
12 mintransit
🏢 DHBW Mannheim
10 minwalk
🏥 SRH Hochschule
15 minwalk
🌆 Frankfurt (ICE)
38 mintrain
🌆 Heidelberg
14 minS-Bahn
🌆 Stuttgart
37 minICE
Irreplaceable position. No new hotel or PBSA scheme can be built at this F-Quadrant address. Competing supply arrives only from the urban periphery.
Student population · Mannheim
Universität Mannheim
~12,500
Hochschule Mannheim
~7,500
DHBW Mannheim
~6,000
SRH Hochschule
~4,000
Popakademie Baden-Württemberg
~600
Total
~100,000
PBSA Supply Gap · Mannheim
Available beds
~3,000
Coverage ratio
~3%
Studierendenwerk Mannheim manages ~3,000 rooms across 17 buildings. Rents capped at €250–450/month. Waiting lists are persistent. Private PBSA is virtually absent — 191 new rooms would represent a 6% uplift to total supply.
Building Location & Student Catchment

F7 5–13, 68159 Mannheim

The Mercure Hotel sits at the geometric heart of Mannheim's famous Quadrate grid — within walking distance of every major university, the Hauptbahnhof, and the pedestrian zone.

Exact Location · F7 5–13
📍 F7 5–13, 68159 Mannheim · © OpenStreetMap contributors Open full map →
Student Catchment · Walking Distance
— 15 MIN — — 10 MIN — — 5 MIN — Hauptbahnhof 5 min walk Uni Mannheim 8 min · 12,500 stu. DHBW 10 min · 6,000 stu. Hochschule Mannheim 12 min transit · 7,500 stu. SRH 15 min · 4,000 stu. F7 5–13 Mercure Hotel Project site University Transport hub College
Total catchment
~100K
students across 5 institutions
Private PBSA coverage
~3%
~3,000 state beds only
Source — Studierendenwerk Mannheim (studierendenwerk-mannheim.de): The Studierendenwerk manages 3,096 housing places across 17 student residences in the Mannheim/Heidelberg region. Rent €239–€507/month. Official waiting lists are maintained — no private PBSA competitor operates in Mannheim city centre. Student population figures from individual university websites (Universität Mannheim, DHBW, Hochschule, SRH) as of academic year 2024/25.
The Project

Mercure Hotel Conversion

Feasibility study launched — preliminary design ("Vorentwurf") April 2026 — converting the Mercure Mannheim, a well-maintained 4-star city-centre hotel, into Mannheim's first institutional-grade PBSA scheme. Two variants under study.

Asset Specification
Property
Mercure Hotel Mannheim City
Address
F7 5–13, 68159 Mannheim
Current use
4-star hotel (Accor / Mercure brand)
Floors above grade
6 floors + basement
Hotel rooms (existing)
~198 hotel rooms
PBSA rooms (post-conv.)
180–191 student rooms
Listed / Protected
No — conversion viable
Condition
Maintained, operational 4-star
ESG alignment
DGNB · Adaptive reuse · EV charging
Why this building works
🏗️ Structural reuseHotel-to-student housing is the most capital-efficient conversion in European real estate — existing floor plates, lift cores, bathrooms, and MEP all transfer directly.
📐 Floor-plate sizeTypical 4-star hotel room (18–25 m²) converts directly to a student studio at minimal cost. No structural demolition required.
📍 No alternative useThe Accor Mercure brand network is rationalising in secondary German cities. Hotel demand post-COVID has not recovered to pre-2019 RevPAR at this grade and location.
🔑 First-mover premiumNo other PBSA scheme of institutional quality is in planning or construction in Mannheim city centre.
Variant A

Industrial Kitchen + Public Fitness

180
Student Rooms
Ground FloorCommercial (no rooms)
Upper Floor 146 rooms
Upper Floor 247 rooms
Upper Floor 347 rooms
Upper Floor 423 rooms
Upper Floor 517 rooms + Roof Terrace
🍽️ Industrial Kitchen (125 m²)Commercial canteen with 4 cold rooms. Serves residents and generates independent catering/event revenue — valuable income diversification.
💪 Public Fitness (158 m²)Large gym with external street-level access — franchise model (e.g. Next Door Gym). Recurring non-occupancy revenue stream.
🅿️ Basement60 car spaces · 290 m² bicycle storage · 4 EV charge points · car-sharing bays · storage lockers.
Variant B

Student Kitchen + Maximised Rooms

191
Student Rooms
Ground Floor11 rooms + communal kitchen
Upper Floor 146 rooms
Upper Floor 247 rooms
Upper Floor 347 rooms
Upper Floor 423 rooms
Upper Floor 517 rooms + Roof Terrace
🍳 Student Communal KitchenMulti-station cooking zones — lower capex, no commercial licensing, aligned with German student-living norms.
📈 +11 Rooms vs Variant AAt avg €750/month, +11 rooms = ~€99K additional annual rent. NPV difference is material at institutional discount rates.
🅿️ Basement70 car spaces · bike storage across ground floor exterior · 4 EV charge points · car-sharing · storage.
Amenity Programme

Built for Gen-Z Expectations

Modern PBSA students expect more than a bed. The programme competes with premium private-sector operators across Europe.

🍽️
Canteen / Industrial Kitchen
💪
Fitness Centre
🏊
Pool Area
🏃
Outdoor Sports Zone
🌿
Garden Terrace
🌇
Rooftop Terrace
💻
Co-working (street-level)
🎮
Gaming Lounge (247 m²)
🎵
Music & Rehearsal Room
📚
Seminar Rooms (68 m²)
🍳
Outdoor Kitchen & BBQ
🧺
Laundry Room (48 m²)
🚗
Parking + EV Charging
🚲
290 m² Bicycle Storage
🔄
Car-Sharing Integration
📦
Storage Lockers
💡
Well-lit corridors — motion-sensor LED throughout, 24h
📖
All-night study lighting — rooms + common study areas designed for late-night use
🔒
Women's safety standard — secure key-fob / app access on every entry point, CCTV, well-lit approach routes
🛡️
24/7 secure building access — no unstaffed blind spots, emergency call points in corridors

Safety and study environment are non-negotiable for modern PBSA operators and their institutional investors. Well-lit corridors, secure single-point access control, and spaces designed for all-night studying are specified from the outset — not retrofitted.

Preliminary Design ("Vorentwurf") · bb22 Architekten · April 2026

Building Cross-Section

A classic German "slab tower + cross-block ("Scheibenhochhaus + Querriegel")" — an L-shaped massing of a taller north-south slab tower (OG1–5) connected to a lower east-west cross-block (OG1–3). Section geometry taken directly from the 1:250 preliminary design ("Vorentwurf") drawings and verified against existing building photography.

Existing building · Street corner elevation
Mercure Hotel Mannheim am Rathaus street view EG OG 1 OG 2 OG 3 OG 4 ↑ OG 5 ↑ ROOF CROSS-BLOCK ("Querriegel") EG – OG3 (4 floors) SLAB TOWER ("Hochhaus") EG – OG5 (6 floors) Entrance canopy

Source: Accor / Mercure Hotel Mannheim am Rathaus (F7 5–13, hotel code 5410). Floor level lines derived from preliminary design ("Vorentwurf") floor heights (EG 4.5m, OG 3.2m each) and calibrated to actual building photograph. OG4 and OG5 visible only on Slab Tower ("Hochhaus") — Cross-Block ("Querriegel") roof is at OG3+1 level, becoming the Roof Terrace ("Dachterrasse").

Garden elevation · Cross-Block ("Querriegel") south face
Mercure Hotel Mannheim garden terrace ROOF OG 3 OG 2 OG 1 EG GARDEN ±0 EG Restaurant / Terrace External dining · garden café OG1–3 · Student rooms ~34 rooms per floor

South-facing garden facade of the Cross-Block ("Querriegel"). The ground floor hosts the existing hotel restaurant + terrace — converting to student common room / social kitchen in the PBSA scheme. The Cross-Block is 4 floors total (ground floor + floors 1–3) as confirmed in the preliminary design ("Vorentwurf").

Section A-A · E–W Cut · 1:200 (approx)

cross-block ("Querriegel", OG1–3) versus slab tower ("Hochhaus", OG1–5)

Double-loaded corridor in both wings. cross-block ("Querriegel") roof becomes roof terrace ("Dachterrasse") accessible from slab tower ("Hochhaus") OG4. Both wings share identical room depths (~5.5m) and floor-to-floor heights (3.2m upper floors).

AMENITY / RESTAURANT ROOF TERRACE ("Dachterrasse") accessible from OG4 corridor N STUDIO S STUDIO CORR. LIFT + STAIR LOBBY / CO-WORKING Slab Tower rises above Cross-Block roof W STUDIO E STUDIO CORR. ±0.0m · Grade +4.5m · OG1 FL. +7.7m · OG2 FL. +10.9m · OG3 FL. +14.1m · OG4 FL. +17.3m · OG5 FL. +20.5m · Roof 3.2m ~15m ~21m CROSS-BLOCK ("Querriegel") EG + OG1–3 · ~34 rooms/floor SLAB TOWER ("Hochhaus") EG + OG1–5 · 17–47 rooms/floor SECTION A-A · E–W CUT · 1:200 APPROX From preliminary design ("Vorentwurf") — bb22 architekten (Apr 2026) · Verified against Accor site photography
Floor-by-Floor Programme
FLOOR WING ROOMS HEIGHT FROM GRADE NOTES
EG Both wings 0 – 11* ±0.0 → +4.5m Lobby · Co-working · Restaurant · Fitness · Bicycle store · *Variant B adds 11 rooms
OG1 L-shape — both wings 46 +4.5 → +7.7m Slab Tower ("Hochhaus") W+E + Cross-Block ("Querriegel") N+S — full L
OG2 L-shape — both wings 47 +7.7 → +10.9m Typical floor — confirmed in preliminary design ("Vorentwurf") OG2 floor plan
OG3 L-shape — both wings 47 +10.9 → +14.1m Top of Cross-Block ("Querriegel") — roof becomes Roof Terrace ("Dachterrasse") above
OG4 Slab tower ("Hochhaus") only 23 +14.1 → +17.3m Above Cross-Block ("Querriegel") parapet — Roof Terrace ("Dachterrasse") accessible at this level
OG5 Slab tower ("Hochhaus") only 17 +17.3 → +20.5m Top floor · Communal rooftop terrace ("Gemeinschaftsnutzung") at south end
TOTAL 180–191 Variant A: 180 rooms (commercial EG) · Variant B: 191 rooms (11 EG rooms + student kitchen)

Source: preliminary design ("Vorentwurf") by bb22 architekten + stadtplaner for 3iPro GmbH, April 2026. Floor counts as annotated in drawings. Cross-section geometry cross-checked against existing hotel photography (Accor, hotel code 5410). This document is confidential.

Ground Floor ("Erdgeschoss") · Variant Comparison

The Ground Floor Decision

The most consequential design decision in the preliminary design ("Vorentwurf"): Variant A optimises for amenity and revenue diversification at ground level. Variant B converts 11 ground-floor bays into student rooms, trading amenity space for direct rental income. This is an irreversible planning choice with material NPV implications.

Ground Floor ("Erdgeschoss") · 1:200 approx · bb22 Architekten
Click any zone to explore programme
ENTRANCE ▼ Back-of-HouseIndustrial KitchenCanteen / Social HallLobby / ReceptionGarden + Outdoor Zone— Main Corridor — Social / Common RoomStudent Communal11 Student Rooms (EG) CROSS-BLOCK ("Querriegel") — E-W wing SLAB TOWER ("Hochhaus") GARDEN · OUTDOOR TERRACE N 10m
👆
Click any zone on
the plan to see details
Commercial kitchen
Social / dining
Student rooms (EG)
Lobby / reception
Garden / outdoor
Ground Floor Trade-off

Variant A sacrifices 11 rooms on the ground floor to accommodate public facilities. Before committing, the key financial test is whether gym membership revenue offsets the rental income of 11 annual tenancy contracts.

11 rooms × €750/mo × 12 = €99,000/yr
Gym franchise (est.) = €40–60K/yr
Net shortfall Var A vs B at EG level: ~€40–60K/yr

Var A only makes sense if the canteen + gym generate blended revenue ≥ €99K/yr, OR if the amenity premium justifies higher student rents across all 180+ rooms.

Operational Complexity

The industrial kitchen in Variant A implies professional catering or canteen management — a significant ongoing operational burden compared to the student-managed kitchens in Variant B.

Var A kitchen risks: Food safety licensing · Catering staff · HACCP compliance · Supply chain management · Risk of contract operator failure
Var B kitchen: No commercial licensing · Self-managed by residents · Low opex · Directly comparable to German student hall ("Wohnheim") norms
Structural Grid · Adaptive Reuse

The repetitive room layout on upper floors is a direct consequence of the existing hotel structural grid — a constraint, but also a conversion advantage. Room widths (~3.8–4.0m) are dictated by existing column bays.

Advantage: No structural demolition required. Grid transfers directly to PBSA studios. Minimal opening-up works.
Constraint: Room sizes are hotel-dictated (~18–22m²). No scope to widen or narrow bays without structural intervention.
L-shape rigidity: Architects have optimised the double-loaded corridor well, but the slab widths (~12.5m) are fixed. No scope to add width or reconfigure the structural frame.

Ground floor plans from preliminary design ("Vorentwurf") by bb22 architekten + stadtplaner for 3iPro GmbH, April 2026. Revenue analysis is indicative only based on assumptions of €750/month student rent. Gym revenue estimated at market franchise rates. This analysis is confidential and for investor discussion purposes only.

Design Strategy · bb22 Architekten · April 2026

Converting Structure into Community

Three spatial moves transform the Mercure's existing fabric — lobby, hotel room module, and south courtyard — into a competitive, community-first student home in central Mannheim.

Design renders: Social Hub · Smart Room · Activated Courtyard
Social Hub  ·  Smart Room  ·  Activated Courtyard
01 · Social Hub
Ground Floor Common Space

The large ground-floor volume is activated through furniture zoning rather than fixed partitions — café, quiet study, and group-work areas within a single open plan. Acoustic ceiling baffles, warm oak, and polished concrete reference Mannheim's industrial character while ensuring concentration-grade speech privacy.

02 · Smart Room
Upper Floor Student Units

Bespoke joinery — lofted bed, integrated desk, built-in storage — treats each converted hotel room as a compact, efficient pod. Light-toned finishes and mirror placement amplify the single window's daylight deep into the room. Small private spaces shift the value proposition to the shared amenities floor.

03 · Activated Courtyard
South-Facing Outdoor Terrace

The south courtyard links directly to indoor common areas — outdoor kitchen and terrace connecting to gaming lounge and social spaces — creating a continuous social circuit. Integrated landscape lighting keeps the space safe and active after dark, a material amenity for students working late hours.

Next Phase · Design Development ("Entwurfsplanung") Focus Areas
Acoustic Specification
Student accommodation carries a significantly higher noise load than hotel use. High-performance inter-unit acoustic isolation is required at Design Development ("Entwurfsplanung") stage.
Operational Model
Variant 2 (Resident Exclusive) is recommended for higher room count, simpler security management, and operational efficiency in Mannheim's student market.
Fire Safety Audit
Hotel-to-PBSA change of use may impose stricter fire egress and detection standards. Early fire safety review is recommended before building permit ("Bauantrag") submission.
Deal Structure

Growth Capital

3iPro is seeking growth capital to fund the Mercure Hotel conversion. Dry Capital is proposing to act as exclusive capital advisor — subject to mandate letter execution. Structure: senior debt + LP equity + GP seed (3iPro), with 3iPro as GP and Development Manager.

Deal Parameters
Instrument
Equity / Senior Debt / JV SPV
Stage
Pre-Planning · Feasibility
Developer / GP
3iPro GmbH, Mannheim
Exclusive Capital Advisor
Dry Capital
Units (post-conversion)
180–191 student rooms
Avg rent target
€700–800/room/month (TBC)
Annualised gross rent (B)
~€1.6–1.8M (TBC, excl. ancillary)
Exit cap rate (target)
4.5–5.5% (current German PBSA)
Indicative GDV
€30–45M (to be modelled in DCF)
Target exit
Institutional PBSA operator / fund sale
ESG
DGNB · Adaptive reuse · EV
Acquisition & Ownership
Current operator
AccorHotels (Mercure brand)
Property owner
To be confirmed in DD
SPA status
Under negotiation — not yet signed
Acquisition price
Confidential — under discussion
Hotel lease wind-down
To be agreed with Accor upon SPA
PBSA lease terms
Not yet agreed — market standard ASTs
Key open item: Confirming the beneficial owner of the freehold and aligning hotel exit with SPA timeline is the critical near-term milestone. 3iPro engagement is active.
Indicative Capital Structure

Senior construction debt sourced by DC or project finance lender. Equity raised via Dry Capital placement. 3iPro contributes as GP and lead developer — no mezzanine tranche.

Project Cost Breakdown
Cost Component
€/m² (est.)
Amount
Acquisition Price
Purchase of Mercure Hotel freehold — SPA under negotiation
~€2,000/m²
~€15M
Hard Costs (post-acquisition)
Structural conversion, fit-out, MEP, façade — 7,500 m² GFA
~€1,500/m²
~€11.25M
Soft Costs
Planning, architect, engineering, permits, finance costs — ~33% of hard
—
~€3.75M
Total Estimated Project Cost ~€30M (indicative — pending QS + SPA)
Capital Stack (3 Tranches)
Senior Debt · 50%
LP Equity · 47%
Tranche
% of Stack
~€M
Senior Debt
50% LTV — construction finance sourced by Dry Capital from German lenders / PBSA debt fund
50%
€15M
LP Equity
Institutional / family office — Dry Capital placement. Introduced subject to mandate letter execution
~47%
~€14M
GP Seed (3iPro)
3iPro developer commitment — aligns GP with LP returns. Seed equity contribution by 3iPro GmbH
~3%
~€900K
Total Capital Stack ~€30M
Dry Capital Fees
Placement fee
To be agreed — indicative retainer and % of capital raised
Success / performance
To be agreed in mandate letter
Note: Final fee structure to be agreed between Dry Capital and 3iPro GmbH. Mandate letter to be executed prior to investor introduction.
Permit & Construction
Planning status
Preliminary Design ("Vorentwurf") — April 2026
Building Permit Application ("Bauantrag")
Expected Q4 2026
Change of use
Hotel → Student housing (viable)
Permit risk
Medium-low · City-centre infill
Construction cost est.
TBC — QS report required
Indicative €/room
€25,000–35,000 conversion cost
Construction duration
12–18 months est.
Contingency
10–15% (to be confirmed in QS)
Indicative Use of Proceeds
~40%
Acquisition / Site Control
~30%
Design, Planning & Permits
~20%
Conversion Works
~10%
Working Capital & Fees
Development Timeline
Apr 2026
Feasibility Study LaunchedPreliminary design ("Vorentwurf") initiated — two variants under review by 3iPro GmbH and advisors.
Q2 2026
Capital Introduction — ActiveNDA process, project walkthrough, DCF model delivery via Dry Capital. Mandate letter execution.
Q3 2026
Site Control + HoTHeads of terms on site acquisition, capital commitment, deal structure and JV terms finalised.
Q4 2026
Planning ApplicationBuilding permit application ("Bauantrag") filed. Full conversion design and contractor pre-selection underway.
2027–28
Construction WorksHotel to PBSA conversion. Phased handover by floor possible. PBSA management agreement signed.
2028–29
Operational Stabilisation / ExitFull occupancy. Institutional sale to PBSA fund or operator at stabilised yield.
Dry Capital

Our Role in This Deal

"Dry Capital would like to act as exclusive capital advisor to 3iPro for its future growth capital — beginning with the Mercure PBSA conversion in Mannheim."

Dry Capital · April 2026

We source and structure both debt and equity — from initial feasibility through to financial close. Subject to mandate execution, our engagement covers this transaction and, longer term, the full 3iPro development pipeline.

💰

Equity Sourcing

We source LP equity from our proprietary network of institutional investors and family offices. Full process managed: NDA → data room → term sheet → close.

🏦

Debt Sourcing

We source senior construction finance from German lenders and European PBSA specialist debt funds. Debt and equity processes run in parallel — minimising blended cost of capital and maximising returns for 3iPro.

⚖️

Deal Structuring

We advise on the full capital structure: JV / SPV formation, waterfall mechanics, GP/LP terms, and development management agreement. We ensure the deal is bankable and investor-grade before any introduction is made.

📊

Financial Modelling

We build the project DCF, sensitivity analysis, and investor return model alongside 3iPro. This drives all debt and equity term sheet negotiations — a prerequisite before any capital is introduced to the deal.

Active Mandates

We Are Doing This Right Now

The 3iPro Mercure mandate sits alongside three live capital-raising processes currently being run by Dry Capital. All are confidential. Shown here to evidence that we are an active advisor — not a broker starting from zero.

Senior Living · Spain
Senior Homes
Madrid
€70M
Target Raise

New GP in exclusivity to acquire 9 operational care home sites across the Madrid region. DC is leading equity placement. One equity provider at final term sheet stage — close expected H2 2025.

Asset
9 Care Home Sites
Status
Final Term Sheet
Agriculture · Spain
Agri Fund
Spain
€16M
Target Raise

New GP raising its inaugural avocado and specialty crop fund targeting Spanish institutional farmland investors. DC is running the full LP placement process across DACH and Benelux family offices with an agricultural mandate.

Strategy
Avocado Fund I
Status
LP Roadshow
Impact RE · Europe
Brownfield
Impact Fund V
€100M
Target Raise

5th fund from an established impact GP. European brownfield-to-residential strategy with Article 9 classification. DC is leading LP placement for the new vintage across impact-mandated institutional investors and sovereign-aligned family offices.

Vintage
Fund V · Article 9
Status
Active Raise
🔒
All mandate details are confidential. GP names, investor identities, and transaction terms are not disclosed without NDA. Shown here solely to demonstrate that Dry Capital is an active, operating advisor with live deal flow across asset classes and geographies.
Target Investor Universe

Dry Capital Investor Network

Dry Capital has active relationships with equity and debt investors across this transaction type. Specific names and terms are shared under NDA only. All introductions are subject to investor suitability and mandate letter execution.

Institutional fund managers, PBSA operators, and specialist living-sector investors. These firms have been engaged by Dry Capital across prior transactions in German and European real estate.

LaSalle IM
LREDS · Fund Manager
€77B AUM global real estate. LREDS division active in European student housing, logistics and living sectors.
Greykite
PBSA Specialist · UK/EU
Launched €250M fund in 2024 specifically for German hotel-to-PBSA conversions — identical playbook to this transaction.
Tribera
Living Sector · Value-Add
Specialist living-sector investor focused on value-add and development opportunities across European residential markets.
Livensa Living
PBSA Operator · CPP-Backed
18,000+ student beds across Europe. CPP-backed PBSA specialist actively expanding into Germany. NDA-level engagement via DC.
50+ Active Investors
Dry Capital maintains a live, curated list of 50+ institutional investors and family offices — covering both debt and equity — who are actively deploying into German PBSA. All introductions are made under mandate letter, with investor identity released only after execution.
Type A
DACH Family Offices
High-conviction RE mandates. German-speaking. Development premium over core.
Type B
Benelux / UK PBSA Funds
Existing PBSA books in UK/NL. Expanding Germany. Prefer co-invest with local GP.
Type C
Opportunistic PE / Mez
Return-driven. Comfortable with German conversion risk. 15–20%+ target IRR.
Due Diligence

Information Status

What we have, what we need from 3iPro, and what Dry Capital can source independently. This checklist drives the NDA and data room process.

✓ Confirmed ⚡ In Progress ⚠ Needed from 3iPro ◎ DC Can Source
🇩🇪 German documents are fine — no English translation required. All project documents, contracts, permits, and financial statements can be submitted in German. Dry Capital handles investor communication in English.
Available Now
📍
Location Analysis
Macro + micro research, distances, university data, supply gap
✓ Confirmed
Full location research completed — F7 position, transit connectivity, all five universities, Studierendenwerk supply analysis. Mannheim city data verified.
📐
Architectural Variants
Two floor plan variants (180 / 191 rooms) with floor-by-floor breakdown
✓ Confirmed
Preliminary design ("Vorentwurf") complete for both variants. Floor plates, room counts, amenity programming, basement infrastructure all defined. PDF available under NDA.
🏢
3iPro Company Profile
Registration, MDs, DGNB certification, track record
✓ Confirmed
HRB 92276, registered Frankfurt a.M. Three named MDs: Helmrich, Wilhelm, Deletioglu. DGNB member. Three completed/delivering projects confirmed on public record.
📊
PBSA Market Research
Germany market size, CAGR, penetration vs Europe, Mannheim data
✓ Confirmed
€2.4B Germany PBSA 2025, 10.57% CAGR to 2030. Penetration <8% vs 38% UK. Greykite €250M comparable transaction validated. Mannheim ~3% coverage ratio confirmed.
Required from 3iPro
📈
Project DCF & Financial Model
Full development appraisal, sensitivity analysis, return stack by tranche
⚠ Required
Critical prerequisite for any investor introduction. Must show: acquisition cost, hard/soft costs, financing costs, revenue assumptions by variant, exit scenario at 4.5% and 5.5% cap rates, LP/GP waterfall.
🏷️
Deal Terms & JV Term Sheet
GP/LP mechanics, promote structure, development management fee
⚠ Required
3iPro needs to confirm their GP position terms: co-invest percentage, development management fee (% of hard costs), promote hurdle and split, LP governance rights, veto mechanics.
🔑
Seller / Owner Identity & SPA Status
Beneficial ownership of freehold, SPA heads of terms, negotiation status
⚠ Required
Must confirm: (1) Is Accor the freeholder or a leaseholder? Who is the ultimate property owner? (2) Is there an option agreement / HoT in place? (3) What is the asking price and indicative timeline to SPA exchange?
📋
PBSA Lease / Management Agreement
Target lease structure, operator, rent guarantee, term, break clauses
⚠ Required
Investors will want clarity on exit leasing. Options: (A) individual AST lettings direct to students — higher yield, management-intensive; (B) forward sale to PBSA operator pre-completion; (C) management agreement with operator at stabilised yield. 3iPro to advise preferred route.
🏗️
Construction Cost Schedule (QS)
Detailed hard and soft cost breakdown, contingency, preliminaries
⚠ Required
Quantity surveyor cost plan needed to validate the indicative €25,000–35,000/room assumption. Lenders and equity investors will require a formal QS report at HoT stage, and a locked GMP contract at draw-down.
📅
Confirmed Development Timeline
SPA exchange, building permit ("Bauantrag"), construction start and completion, handover
⚠ Required
Programme to be confirmed by 3iPro with planning advisor input. Key milestones: SPA exchange (target Q3 2026), building permit ("Bauantrag") (Q4 2026), construction start (Q1 2027), completion (Q3 2028).
Dry Capital Can Source
🏦
Senior Construction Debt
German bank or PBSA debt fund — 55–60% LTC, EURIBOR + spread
◎ DC Source
DC to run a debt process in parallel with equity placement. Target: German regional bank (Sparkasse / Volksbank / Pfandbrief lender) or specialist PBSA debt fund. Requires signed SPA and planning consent at draw-down.
💰
LP Equity
Institutional and family office investors — introduced under NDA and mandate letter
◎ DC Source
DC's proprietary investor list includes German/DACH family offices, Benelux PBSA specialists, and UK PE real estate. Specific names and prior transaction data shared under NDA only. All introductions subject to investor suitability and mandate letter execution.
DC can introduce specialist German real estate legal counsel for SPV formation, JV documentation, and investor subscription agreements. Cost borne by the SPV.
Mandate · Capital Advisory

Formally appoint Dry Capital
as capital advisor for this transaction.

This is the starting gun.

Without a signed mandate, no investor introductions are made and no investor names are disclosed.

Discuss and propose a mandate with Dry Capital.

Discuss the Mandate Schedule a Call
Exclusive Capital Advisor
Dry Capital
Developer
Asset
PBSA Conversion
Location
Mannheim · DE