Akelius Berlin GmbH, the German subsidiary of Sweden-based Akelius Fastigheter AB, and Benson Elliot Capital Management ('Benson Elliot'), the UK-based private equity real estate fund manager, announce the closing of a Berlin residential transaction.
The assets were part of the Silvertower multi-family residential property portfolio which Benson Elliot acquired in September 2010 for 36.7 million in a joint venture with Hirling Capital Investment Services GmbH.
Through this transaction, Benson Elliot has sold c. 50% of the 720 units in the portfolio, for a consideration significantly above acquisition price. The disposal was made upon the successful completion of a number of asset management initiatives, which resulted in a reduced vacancy rate, increased income and a stabilization of the assets.
Akelius owns 13,300 residential units in Germany with 6,800 located in Berlin. The growth in 2011 and 2012 has been significant with Akelius acquiring 1,900 residential units in Berlin and another 2,200 residential units in Cologne, Düsseldorf, Hamburg and Frankfurt.
Joseph DeLeo, Senior Partner at Benson Elliot, commented:
"This sale demonstrates our ability to source opportunities, manage investments and successfully exit transactions to create value for our investors, notwithstanding the on-going challenges in the European real estate market.
"We continue to believe that the German residential sector offers attractive investment opportunities, and are closely monitoring the market to take advantage of the right deals when they become available."
Pär Hakeman, CEO Akelius Germany, commented:
"We are very happy to close another transaction in a strong developing area in Berlin. As a long term investor we see very good opportunities to continue to develop the properties and to raise further potentials with our own management team."
Source: FTI Consulting