Germany-focused real estate investor Aggregate Holdings has completed the acquisition of an 85% interest in a portfolio of 10 mixed-use projects across Germany for a significant discount to their value per end 2020 of €1.3 bn.
The assets, with a gross development value of €4.5 bn, consist of five projects in Berlin, four projects in Düsseldorf and one project in Frankfurt. The portfolio’s focus is largely mixed-use urban developments incorporating office (53%), residential (32%), plus commercial, retail and other uses (15%).
Aggregate plans to construct the majority of the Berlin assets as yielding properties in its Build & Hold division and to progress development and then exit the other assets in the portfolio over time.
Currently valued at €1.3 bn, the development projects have well advanced planning and building permit applications, with one project having already received a building permit, and five more projects on course to receive building permission in 2021 or early 2022. The remaining projects benefit from zoning plans or project-related local development plans.
The key Berlin projects are located close to Berlin Brandenburg airport and in the south-east residential area of Treptow-Köpenick. Construction of the Berlin-based projects will commence in 2022, with first rental income expected in 2024, following pre-letting in parallel with construction.
Benjamin Lee, chief financial officer and John Nacos, chief investment officer at Aggregate Holdings, said: ‘This was a great opportunity to acquire high quality, well located real estate assets in Berlin, Düsseldorf and Frankfurt. The entire portfolio was acquired at an attractive price, again demonstrating Aggregate’s ability to undertake complex off-market transactions and deliver well-priced yield-to-cost assets.’
