Deutsche Investment KVG has acquired a residential property portfolio in a total investment volume of c.€26m, the properties being located in central locations in Berlin’s inner city. The two properties divide into 96 residential and 6 commercial units. The acquisition was transacted under a single mandate by an institutional investor on behalf of whom Deutsche Investment has been investing in Berlin’s residential real estate market since May 2019.
The Belle Epoque and late-nineteenth-century properties are situated in central inner-city locations in Pankow, Friedrichshain-Kreuzberg, Tempelhof-Schoneberg and Neukolln, and are integrated into the local infrastructure, which is typical of Berlin insofar as it mixes one-off neighbourhood retailers with renowned retail multiples. All of the properties lie within easy walking distance of public mass transit stops, including centrally located underground stations and rapid transit stations. The houses are almost fully occupied. In addition, there is potential for the new-build construction of further residential units within the framework of infill densification programs, especially through the development of attic storeys.
“For our institutional investors and for us, the investments we have been making in Berlin since last year are a clear commitment to the city’s housing market,” said Michael Krzyzanek, Managing Director for Portfolio Management at Deutsche Investment KVG. “What we appreciate about this recently acquired residential portfolio is, once again, that they are part of close-knit Berlin neighbourhoods that make each property unique. Our approach of long-term property asset ownership enables us to keep the highly liveable residential environment intact for the tenants, and simultaneously to secure the long-term stability of rental income for our investor.”