Private equity real estate firm Benson Elliot Capital Management has completed the EUR 36.7 mln acquisition of a portfolio of multifamily residential properties in Berlin's popular Friedrichshain district. The portfolio comprises 720 units, most of which have been substantially renovated in recent years, all within walking distance of Berlin's city centre.
Private equity real estate firm Benson Elliot Capital Management has completed the EUR 36.7 mln acquisition of a portfolio of multifamily residential properties in Berlin's popular Friedrichshain district. The portfolio comprises 720 units, most of which have been substantially renovated in recent years, all within walking distance of Berlin's city centre.
The transaction was undertaken in a joint venture with Berlin-based specialist residential operator Hirling Capital Investment Services.
Trish Barrigan, senior partner at Benson Elliot, commented: 'Berlin has an attractive residential rental market, supported by low rents, sustained demand and undersupply. Properties in the most attractive locations have seen, and should continue to see, above-inflation income growth. We believe the buildings we have acquired are well-positioned to benefit from the market’s strength, and from our joint venture’s ability to add value.'
Frank Hirling, Managing Director of HCIS, added: 'Our focus will now be on working with Benson Elliot to implement a strategy of actively managing the buildings in order to improve and maximise the value of the assets over the long term.'
The acquisition is the third undertaken this year by Benson Elliot on behalf of Benson Elliot Real Estate Partners II, and the fund's third acquisition in Germany since 2007.
Last year the firm announced the further growth of its European fund management business with the appointment of Philipp Braschel as principal to oversee the firm's activities in German-speaking Europe.
Olswang LLP, Ernst & Young GmbH and Makon GmbH & Co. KG advised on the acquisition.
