CBRE Investment Management Acquires Circa €360 Million Residential Portfolio in Berlin
Circa 1,200 newly built residential apartments with strong sustainability credentials
November 3, 2023
CBRE Investment Management (“CBRE IM”), on behalf of investment programs sponsored by the firm, has exchanged contracts to acquire a circa €360 million residential portfolio in Berlin, Germany, providing circa 1,200 residential apartments. The vendor is Vonovia.
The entire 91,275 sq m multi-family residential portfolio, all newly built or delivered in stages with full completion by mid-2024, comprises 16 buildings located in three different locations in Berlin. The portfolio is of modern design, high quality, and strong sustainability credentials. All apartments have a balcony or terrace, underfloor heating, and local district heating is used to meet heating and hot water requirements. The apartments are all within walking distance of local amenities and transport hubs offering excellent connectivity to Berlin’s City Centre.
Sebastian Ehrhardt, Head of Transactions Germany at CBRE Investment Management commented “We have been provided a fantastic opportunity to add to the high-quality residential portfolio that we acquired earlier this year. This core portfolio aligns with two of CBRE IM’s investment strategies and meets their affordability, sustainability, and investment requirements. Recognising that we are in a unique investment window, we remain focused on unlocking further opportunities across Germany.”
Marius Schöner, EMEA Head of Residential Operator Division at CBRE Investment Management added: “This transaction reflects our ability to leverage our in-house capabilities and expertise to secure compelling opportunities, as we continue to scale our residential platform. We have moved at pace and closed this deal, in challenging market conditions on behalf of a number of capital sources.
With a significant supply deficit of new homes in Berlin1, the occupier demand for multi-family homes is high. We expect that the buildings still to be completed will quickly lease up and that we achieve strong occupancy levels across the portfolio.”
CBRE IM is a leading investor-operator in residential with €10.9 billion* residential assets under management in EMEA for the firm’s Direct and Indirect strategies. The Direct strategies platform has a broad footprint across all major European residential markets and invests across a number of different investment strategies and programs including three residential specialised funds.
CBRE IM was advised by Linklaters (Legal), EY (Tax & Structuring), CBRE Building Consultancy (TDD), CBRE, sowie Engel & Völkers (Commercial Buyside).
1 Source: PMA and CBRE IM
*AUM as of June 30, 2023
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $144.2 billion in assets under management* as of September 30, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.