Benson Elliot, the UK-based private equity real estate fund manager, has made an opportunistic disposal of a Berlin office asset following an unsolicited offer.
Benson Elliot Real Estate Partners IV acquired Kurfürstenstraße 87, an eight storey, 6,192 sqm office building, in March 2015, alongside a second Berlin property, Budapester Straβe 35. The two buildings were acquired in joint venture with Klingsöhr Projektentwicklung and Rockstone Real Estate, in a sale leaseback transaction with Berliner Volksbank eG.
Kurfürstenstraße 87 has been sold at a 4% rental yield to a fund backed by a German professional pension scheme, advised by Cornerstone Real Estate Advisors. The sale will deliver BEREP IV a 2.4x multiple on its investment. At the time of purchase the total portfolio of both Budapester Straβe 35 and Kurfürstenstraβe 87 was valued at approximately €100 million post re-development.
Marc Mogull, managing partner, Benson Elliot said: “We stock-pick our investments for growth, but we need to be nimble enough to shift strategy when opportunity comes knocking. At the end of the day we’re performance driven, not AUM driven. This disposal will enable us to make an early distribution to investors, and to recycle the profits into other opportunities.”
Constructed in 1929 as the headquarters of Lenz & Co, the listed building – which features a shell limestone façade and entrance lobby – was designed by famed German architect Heinrich Straumer. Straumer, who also designed the iconic Berlin Radio Tower and was a student of Paul Wallot, designer of the Berlin Reichstag. The property was extensively refurbished in 2002 by Berliner Volksbank.
Benson Elliot’s German portfolio also includes Turmcenter in Frankfurt which was acquired back in 2013 and a ten strong hotel portfolio that features Westin Grand in Berlin, the Park Inn Alexanderplatz in Berlin and the Westin Bellevue in Dresden.
