Munich-based privately-owned real estate investor AM Alpha has sold a mixed-use complex in Berlin consisting of 260 residential and 25 commercial units to the Skjerven Group for just under €26 mln.

Munich-based privately-owned real estate investor AM Alpha has sold a mixed-use complex in Berlin consisting of 260 residential and 25 commercial units to the Skjerven Group for just under €26 mln.

The residential assets were acquired from a private individual in 2006 for €11.7 mln. AM Alpha invested a further €5 mln to renovate the properties, which have seen their vacancy rate reduce significantly over the past years, with rental income rising from €654,000 in 2009 to €1.4 mln per year at present.

The assets offer around 11,500 m2, consisting of around 9,500 m2 of residential space and 2,000 m2 of commercial space.

'When we acquired the apartments in Berlin, most of them were not renovated and were in a very bad condition. By completely modernising all of the apartments and implementing several additional measures, we raised the housing quality and sustainably increased the rental level,' said Silvia Müller, managing director of FCP Service with responsibility for modernisation, construction and re-letting.

AM Alpha will use the proceeds of the sale to acquire new commercial properties and residential complexes in Germany. 'We will continue to invest in cities with better-than-average economic and demographic forecasts, particularly Munich and Berlin. In doing so, we are primarily looking for investments with higher management potential,' said Siegmut Böhm, managing director of AM Alpha.