JER Partners ("JER") and its German operating partner European Commercial Assets ("ECA") have acquired a further 16 residential, commercial and mixed-use properties in Berlin, Germany for approximately 53 million, building on a number of similar previously announced transactions.
Over the past two years, JER and ECA have acquired 88 properties from 41 owners, containing over 3,700 flats and over 400 commercial units in a number of separate portfolio transactions in Berlin, Germany. All assets are in good locations and are generally undermanaged. JER and ECA plan to increase the value of their investments through active asset management mainly through rental growth as a result of refurbishment and modernisation for which a substantial Capex program has been put in place. Some assets are earmarked for condominium sale.
JER and ECA have been working closely together over the past two years to identify off market opportunities with strong capital growth potential mainly in the residential market in Berlin. ECA, which represents JER's management platform in Germany with over 30 staff in Berlin, has excellent market knowledge and assists JER in sourcing transactions as well as actively managing the portfolio.
This deal marks the final transaction in this series of acquisitions.
Malcolm Le May, President of JER Europe, commented: "This deal with ECA demonstrates our joint commitment to invest in the attractive economics of the Berlin residential market. ECA is an excellent operating partner for JER and we are actively assessing how we will maximise the joint investments we have made over the past two years."
Hans-Peter Stoessel, co-founder and owner of ECA, said: "ECA and JER are strong participants in the Berlin market. Together we have identified and purchased portfolios of properties which we believe have very strong growth characteristics. The combination of our complementary skills and the shared philosophy of identifying mispriced assets and then employing active asset management, redevelopment and market positioning to enhance and maximise value, is a major plank of our successful acquisition strategy."