CORESTATE Group has acquired a residential and commercial real estate portfolio comprising 40 properties. The portfolio offers slightly lower than market rental levels and assets are mostly located in sought after micro-locations in the city of Berlin. The size of the transaction is approximately 160 million. The portfolio also includes a 35 million project development in the city-center.
CORESTATE Group plans to invest significant capex amounts to further improve profitability and the already good asset quality in the next years. These properties had all been acquired by a foreign investor during the peak cycle of the German real estate market. The existing bank financing with attractive terms will be assumed. It is part of a securitized loan conduit.
This is the fourth transaction CORESTATE Group has realized in 2010 for which CORESTATE, together with the lenders, will implement a new business plan including capex investments.
"The complex assumption of securitized CMBS debt is an extreme challenge for all parties involved and offers a good preview for the upcoming years," says Ralph Winter, Founder of CORESTATE.
Source: Business Network Berlin