CDC Investissement Immobilier, the real estate asset management subsidiary of French financial institution Caisse des Dépôts, has inked a strategic partnership with Covivio in Germany.
The partnership will see CDC acquire a 49% stake in a predominantly residential portfolio in the centre of Berlin currently owned by Covivio and its entities.
CDC will acquire 39% from Covivio Immobilien, a subsidiary owned by Covivio at 61.7%, and 10% from Covivio.
The portfolio, which is representative of Covivio's Berlin residential portfolio, comprises 8 assets located in several of Berlin's most attractive districts (Charlottenburg, Halensee, Schöneberg, Mitte, Prenzlauer Berg, Friedrichshain, Lichtenberg and Steglitz).
The portfolio totals around 70,000 m2, including 770 flats, 15,800 sqm of commercial space and a 274-space public car park.
This transaction was signed on the basis of a portfolio valuation of €274 mln (at 100%), in line with the appraisal values at the end of December 2023. The mortgage financing backed by the portfolio will remain in place.
CDC said that the creation of the joint venture illustrated its interest in the Berlin residential market, and highlighted the quality of the portfolio and the expertise of Covivio's local teams.
Covivio will continue to provide asset and property management for the portfolio and will implement an ambitious strategy to improve the portfolio's environmental performance by 2030, in line with the ESG targets of both partners.
The transaction for the German residential sector will also contribute €93 mln (group share) to Covivio's disposal programme.
The deal is expected to close in Q2 2024.
