The first residential portfolio acquired was in Germany for €130 mln from ZBI AG. Kauri CAB Management GmbH, and Apeiron Capital, the northern European property specialist, in partnership with a leading global Sovereign Wealth Fund, have today announced the formation of a new €300 mln joint venture partnership.
With starting equity capital of €100 mln in the new joint venture, the intention of the JV is to acquire portfolios and individual property assets across Germany, initially targeting a portfolio size of €300 mln.
The JV also announces its first acquisition, a portfolio of 1,675 residential and 105 commercial units within 61 residential buildings in Germany for a purchase consideration of €130 mln. Located in Berlin and Magdeburg, the buildings have in aggregate approximately 120,000 m² of lettable space.
The units, mostly of the ‘Altbau’ or period style, are located in the popular districts of Berlin (70% of the portfolio) including the city center, Reinickendorf, Tempelhof, Steglitz and Lichtenberg as well as in Magdeburg (30% of the portfolio). The seller of the ‘Zeus’ Portfolio is ZBI Zentral Boden Immobilien AG in Erlangen.
This acquisition builds on Kauri CAB’s experience in the German residential space and follows its sale of 25 buildings in Berlin announced in July 2014 in partnership with Pramerica Real Estate Investors. Apeiron is a privately held principal investment and asset management firm dedicated to real estate opportunities in the UK, Germany and the Nordic region.
Hagen Kahmann Managing Director of KCM said: “German residential property continues to be an attractive proposition. Our new joint venture between Kauri CAB, Apeiron and our institutional partner brings together a group of investors with a strong track record in this space. KCM and the JV were advised by Berlin based Strategis AG, Beiten Burkhardt and CT Commerzial Trust Group. Unicredit bank provided senior financing to the acquisition.