CORESTATE Group acquires Berlin portfolio with over 2,000 apartments (DE)

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

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