Kauri CAB Management and Apeiron Capital have teamed up with an unnamed sovereign wealth fund to invest in German residential property.
The joint venture has invested €130m in a portfolio of 1,675 residential and 105 commercial units within 61 residential buildings in Germany.
The 120,000sqm Zeus portfolio, spread across Magdeburg and Berlin, was sold by Zentral Boden Immobilien (ZBI).
The partnership, which has an initial starting equity capital of €100m, is aiming to build a €300m portfolio including leverage.
Hagen Kahmann, Kauri CAB managing director, said German residential property “continues to be an attractive proposition”.
Berlin, he added, offers an “attractive, long-term, structural supply/demand imbalance for rental housing”.
Privately held Apeiron said the returns on offer from Northern European residential property made the asset class increasingly attractive to investors.
The German private rental sector has undergone legislative change in recent months, with rent levels now capped.
The country’s CDU/CSU and SPD federal government this year introduced a rent cap, or ‘Mietpreisbremse’, designed to limit rent increases in cities.
On overstretched housing markets, the rents of new leases cannot rise more than 10% above the local reference rent under the new cap.
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