The Berlin-based company Capital Bay GmbH (Capital Bay) has acquired the former Tetra Pak business premises and the neighbouring Underberg premises with a total land area of more than 80,000 m² in Heiligensee, Berlin. Capital Bay is developing the site, located right by the lake Nieder-Neuendorfer See, in a joint venture with CKV Vermögensverwaltung GmbH (CKV), the initiator of this real estate development. The acquisition was structured as an asset and share deal.
Due to the current shortage of housing in Berlin and the associated rise in rents, Capital Bay and CKV intend to obtain planning permission for both privately financed and subsidised housing together with the City of Berlin. The existing rental agreements for the two properties expire in 2018. By then, a change in the applicable construction law is to be effected and the urban development conditions for up to 1,200 residential units are to be established. Initial talks regarding the acquisition of 25% of the potential residential space for public/subsidised housing – as stipulated by the City of Berlin – have already been held with the municipal housing construction company Gewobag.
The two properties are located in an area dominated entirely by residential construction and are directly adjacent to a nature reserve and the banks of the Nieder-Neuendorfer See. Access to the A111 motorway is just two kilometres away, while the Heiligensee S-Bahn railway station and the bus stop are within walking distance. Thus, the location offers ideal conditions for the planned residential use. The law firm Jung & Schleicher Rechtsanwälte, Berlin, assisted Capital Bay and CKV in the negotiations.
Christian Krawinkel, CEO of CKV Vermögensverwaltung GmbH, comments:
“As real estate developer, we wish to develop and implement a special residential development in Heiligensee, Berlin, considering the urban development and building regulation conditions. Based on our personal interest, a centre for children and young people that will be financially supported by CKV is also to be integrated in the project. Because the project volume to be financed amounts to around €250 million which exceeds our available financial resources, we have chosen Capital Bay as a partner. The collaboration with Capital Bay is extremely constructive and solution-oriented. Further joint projects are being prepared.”
George Salden, CEO of Capital Bay GmbH, comments: “Capital Bay primarily focuses on investment opportunities in the value-add, opportunistic and development segments. That is why we are involved in these kinds of future-oriented projects. Here, Capital Bay can draw on the extensive experience of CKV, which has been successfully implementing residential and commercial property developments for more than 35 years. Further projects in Berlin with up to 5,000 residential units are being planned together with CKV.”