Dawnay, Day Group London based, diversified international financial and property Group, has announced that it has acquired one of the largest property collections in Manhattan, New York close to the asking price of approx. €175 million ($250 mln). The portfolio consists of 47 buildings in East Harlem and 7 condo units in the East Village. The 47 East Harlem buildings include 1,137 residential apartment units and 55 commercial units located throughout the area, from East 100th Street up to East 120th Street.
East Harlem is a 2.2-square mile area of Manhattan bounded by Fifth Avenue and Central Park to the west, the Harlem River and FDR to the east and East 96th Street to the south. The line of demarcation between East Harlem and the more prosperous Upper East Side has been steadily disappearing. Luxury high rises have been developed as far north as East 118th Street. There has been a steady spillover of tenants who find superior value in these apartments suggesting East Harlem is one of the upcoming neighborhoods in the City which is further supported by the opening of new restaurants, excellent shopping and transportation links.
Dawnay, Day has established a new company Dawnay, Day US Real Estate Management LLC based in New York to manage the Harlem portfolio and source future acquisitions. The company currently employs 45 people and this will expand alongside the US portfolio. The company is currently assessing similar types of acquisitions within the US which provide opportunities to create added value through long term asset management activity.
Dawnay, Day's property portfolio now includes assets from a wide number of countries including: UK, Germany, Italy, Eastern and Central Europe, Ukraine, Russia, India, Australia and now the US.
Peter Klimt, Chief Executive of Dawnay, Day Group said: "This is our first venture into the US and I am delighted to have begun with such a substantial acquisition in central New York. We believe we can add considerable value to the assets acquired primarily through asset management activity. The decision to acquire this portfolio reflects our ability as a private company to acquire assets on an opportunistic basis which is often against current trends of mainstream investing. This is a further step in Dawnay, Day seeking deep value property opportunities on an international scale "
Source: Dawnay, Day