London-listed German residential investor Phoenix Spree Deutschland has boosted its portfolio in Berlin with the acquisition of four properties for almost €19 mln.
The purchase price represents a price per square metre of €1,970.
The four properties comprise over 9,500 m2 of lettable space across 132 residential and 16 commercial units and are located in the Berlin districts of Mitte and Wedding.
Phoenix said the properties offer reversionary rental opportunities through modernisation, refurbishment and re-letting at current market rates.
The acquisitions follow the publication of interim results showing Phoenix booked NAV uplifts of 6% and a 23% dividend increase, driven by the strong demand and lack of supply of Berlin housing.
Jörg Schwagenscheidt, managing director of PMM Partners in Germany, which manages Phoenix Spree, told PropertyEU earlier this year that Berlin has the most attractive risk-return profile in Germany. 'Berlin is also growing by 50,000 people a year – and that’s excluding any refugee numbers,' Schwagenscheidt said.
Phoenix Spree's German portfolio was valued at €329.8 mln at 30 June, with properties in Berlin making up over 70% or €231.3 mln of the total.
