CORESTATE, a specialist real estate investor based in Zug, Switzerland, announces it has acquired a German commercial and residential portfolio valued at 150 million and entered into an exclusive agreement to purchase an additional 150 million of residential assets.
The first portfolio comprises 2,400 residential units in multi-family buildings in metropolitan areas of Northern Germany. Included in the portfolio are two core commercial assets totaling approximately 22,000 m² in central Berlin and Hamburg. The portfolio was acquired at a significant discount to the original loan amount.
The second portfolio comprises residential and commercial units and is spread across major cities in North-Rhine-Westphalia (NRW). The portfolio is currently in a forced administration and in need of a complete recapitalization. The parties have agreed to keep the sales prices confidential.
Ralph Winter, Chairman and Founder of CORESTATE Capital comments:
"The outlook for the German Residential market for 2013 indicates that our multi-family strategy leads to a sustained value creation in our investments. This is illustrated by the upcoming IPOs in the German residential market which show an increased interest by national and international capital for non-core residential real estate."
"Our specialized asset management team will now take the respective measures to reposition and stabilize these newly acquired portfolios as previously conducted many times in our various former acquisitions."