\u00a0<\/i>By Keith Loria, Contributing Editor<\/i><\/p>\n
A joint venture between Prudential Real Estate Investors and Kauri CAB Management GmbH has sold a portfolio of 25 residential \u2018Altbau\u2019 buildings located within the S-Bahn ring of Berlin for $105 million.<\/p>\n
PREI, which operates as Pramerica Real Estate Investors in Germany, acted on behalf of institutional investors. The buyer was not disclosed.<\/p>\n
\u201cGiven the current cap rate compression in Berlin, we saw this as an opportunity to capitalize on the strong demand for Berlin Altbau properties from both national and international investors,\u201d Theresa Miller, Prudential Financial, Inc.\u2019s vice president, global communications-asset management, told Commercial Property Executive<\/i>. \u201cWhen we announced the joint venture in 2011, we saw an opportunity in a recovering German economy that provided a stable investment environment and the opportunity for rental growth, particularly in residential.\u201d<\/p>\n
The portfolio includes 25 buildings constructed between 1886 and 1913, with more than 538,000 square feet available to be leased in the districts of Neuk\u00f6lln, Kreuzberg, Sch\u00f6neberg, Wedding, Tiergarten and Prenzlauer Berg.<\/p>\n
Since 2011, the joint venture amassed 953 apartments, with Kauri CAB sourcing the acquisitions and also overseeing the day-to-day property management, rental negotiations and refurbishment.<\/p>\n
\u201cWe are pleased how this transaction resulted in a win for us in Berlin\u2019s sizable market with a strong rent culture,\u201d Hagen Kahmann, Kauri CAB Management\u2019s general manager, said in a company release.<\/p>\n
Sebastiano Ferrante, PREI\u2019s head of Germany, said the sale confirms the successful track record of European value-added transactions the company has made on behalf of its clients for the last 15 years.<\/p>\n
\u201cAs part of our current strategy in Europe, PREI is looking to take advantage of the current market opportunities through repositioning of assets in mature markets, acquiring yielding portfolio or capital value recovery and income enhancement in periphery markets,\u201d Miller said. \u201cAs part of that strategy, we may pursue\u00a0further opportunities in the German residential market.\u201d<\/p>\n
Real estate advisor Angermann and European law firm Beiten Burkhardt represented the joint venture in the sale.<\/p>\n","protected":false},"excerpt":{"rendered":"
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