Several family offices from Israel have joined forces to buy and renovate buildings to establish a residential portfolio in eastern Germany.
Several family offices from Israel have joined forces to buy and renovate buildings to establish a residential portfolio in eastern Germany.
The family offices, advised by Berlin-based law firm Bottermann Khorrami (BKLAW), have completed the initial club deal purchase of six residential and office buildings in Leipzig and Halle, with plans to acquire a further eight properties.
All of the properties are largely vacant and require a full modernisation. The group's plans call for the complete refurbishment of the properties in the months ahead. The total investment volume for the entire portfolio, comprising the purchase prices and costs of renovation, is around €23.5 mln.
The investment project was initiated by an Israeli investor and project developer which has been active in the German real estate market with a focus on Berlin for around 10 years. The investment is being financed exclusively with equity capital.
Lawyer Esfandiar Khorrami said: 'The real challenge in advising and providing legal assistance during the club deal was integrating several holding companies in completely different legal systems.'
Khorrami continued: 'This investment confirms the current trend of family offices from the Middle East, especially from Israel, which are choosing to venture more and more into B cities (in Germany). Above all, this is due to the considerably improved ratio of returns to structural and economic risks. The development risk appetite of these family offices is growing as well.'
