Adler Real Estate, a German listed residential landlord, has acquired the 700-unit Wasserstadt Mitte development project in central Berlin in a forward-purchase transaction. The project is expected to have a market value of €385 mln.
The transaction involves Adler taking control of eight project development companies established by the vendor, a joint venture between London-based private equity fund manager Benson Elliot Capital Management and KauriCAB Development Berlin. Benson Elliot was acting on behalf of its fund, Benson Elliot Real Estate Partners IV.
Adler is paying a total consideration until completion of €120 mln. Upon completion and leasing of the units within the next three years, Adler expects an indicative market value of €385 mln and an annual net rental income of €11 mln from the project. Adler owns and manages 50,000 apartments, mainly in Lower Saxony and North Rhine-Westphalia.
Wasserstadt Mitte is a residential-led mixed use project fronting the Spandauer Schifffahrts iat the Europacity redevelopment district of central Berlin. Benson Elliot and KauriCAB have worked since August 2016 to secure the necessary consents, designs and a fixed price construction contract to deliver a multifamily scheme.
The 50,000 m2 project will provide 700 apartments with over 1,400 residents, 'helping to meet the growing demand for residential accommodation in one of Europe’s most dynamically evolving cities,' according to Benson Elliot.
Benson Elliot began investing in Berlin residential property in 2010, having spotted the opportunity in a city that has since enjoyed consistently strong economic, population and rental growth, said partner Joseph DeLeo.
'Wasserstadt Mitte was Benson Elliot’s most ambitious Berlin residential project, but one we felt confident taking forward given the unique waterfront location and the secure outlook for rental housing in the city. Having taken the project through the planning and pre-development phases, it was an opportune moment to identify a long-term owner,’ Deleo said.
Europacity
The Europacity project has transformed 40 hectares to the north of Berlin’s main railway station – an area which lay derelict for decades – into a new, mixed-use city quarter. The area is located a short walk from the Bundestag, various federal ministries, the Charité (Europe's biggest university hospital) and Humboldt University.
Europacity has attracted large office users, hotels, retailers and cultural facilities. With over two hectares devoted to parks and a kilometre of waterfront along the Spandauer Schifffahrtskanal, Europacity is also seeing the development of some of Berlin’s most desirable housing, Benson Elliot said.
