German property giant Patrizia has taken a majority 90% stake in a new residential development in the Carossa Quarter, located in Berlin’s Spandau district, on behalf of its institutional clients.
The stake was acquired from funds managed by Castlelake, a global private investment firm, for an undisclosed sum.
Kauri CAB, a Berlin-based investor, remains minority shareholder with a 10% stake and will act as a development partner. On completion in 2025, the 125,000 m2 net development is projected to have a gross development value of €750 mln.
Said Stuart Reid, managing director, real estate development at Patrizia: 'Securing our investment in this project, particularly one of such scale, is testament to the skill of our team to identify, negotiate and execute complex transactions, all against the backdrop of Covid-19.'
Located 3km north of the Spandau train station, the 10 hectare freehold site benefits from zoning and planning consents for a waterfront city quarter with views across the Havel.
Approximately 101,000 m2 of new residential space will be built across 17 new buildings and 4 listed buildings, delivering 1,800 residential units comprising predominantly traditional housing, as well as a proportion of micro living, senior living, co-living and affordable housing.
Added Reid: 'As a global gateway city, Berlin is one of the most attractive locations for investment in Germany. Its booming labour market continues to promote positive population growth, with the expansion of its tech, science, research and creative industries supporting well established sectors like tourism and services, all driving strong economic development and population growth.
'From a residential perspective, the city’s continued prosperity ensures demand for housing remains high against a tight supply of new units putting pressure on the rental housing market.'
Sustainable standards
The Carossa Quarter will be built to DGNB Gold Standard for sustainability, with all communal energy supplied by onsite rooftop solar panels. A group of six international and domestic architects have been involved in the design.
Noted Reid: 'The entire new development is car free, with all underground parking accessed from the perimeter and a high level of green landscaping integrated into the exterior areas, including a running track, leisure and sports areas and a public park.
'Rooftop solar panels are designed to meet the energy demands of all common facilities across the Quarter and the energy requirements of all individual apartments can be controlled by the tenants through the Quarter App.'
Carossa also incorporates a total of 30,000 m2 of commercial space, comprising 25,000 m2 value-add office and retail property and 5,000 m2 of shared facilities to form an integral part of the new residential development.
The existing 1940s listed office and retail property is to be refurbished and repositioned in parallel to the development of the residential quarter.
The scheme will furthermore integrate 5,000 m2 of commercial shared facilities, imlcuding co-working offices, guest rooms, fitness facilities, bike maintenance and repair rooms, a DIY workshop, package receipt and sending desk, e-mobility facilities, kindergarten and even canoe rental.
Patrizia was advised by Sammler Usinger and Clifford Chance.
