Pramerica Real Estate Investors and Kauri CAB Management GmbH announced the successful sale of a portfolio of 25 residential ‘Altbau’ buildings located within the S-Bahn ring of Berlin for €78.6 million. Pramerica Real Estate Investors is the real estate investment and advisory business of Prudential Financial, Inc..
The portfolio, with buildings constructed between 1886 and 1913, is approximately 50,000 m² of lettable area in the districts of Neukölln, Kreuzberg, Schöneberg, Wedding, Tiergarten and Prenzlauer Berg. The transaction comprised the remaining assets acquired through a joint venture that Pramerica Real Estate Investors formed in August 2011 with Kauri CAB to invest in residential apartment blocks in Berlin. Pramerica is operating on behalf of institutional investors.
Since 2011, the joint venture amassed 953 apartments, with Kauri CAB sourcing the acquisitions. Kauri CAB also oversaw the day-to-day property management, rental negotiations and refurbishment.
Sebastiano Ferrante, head of Germany for Pramerica Real Estate Investors said, “The sale represents an excellent outcome for Pramerica Real Estate Investors and our partner. Most important, this sale confirms the successful track record of European value-added transactions we have made on behalf of our clients for the last 15 years. We intend to leverage this experience to capitalize on future investment opportunities in the German residential sector.”
Hagen Kahmann Genaral Manager of Kauri CAB Management added “We are pleased how this transaction resulted in a win for us in Berlin’s sizable market with a strong rent culture.”
Real estate advisor Angermann and European law firm Beiten Burkhardt acted for the joint venture in the sale.