German investor Real I.S. has acquired the Prime Four residential portfolio for a new open-ended real estate special fund launched with equity of €300 mln.
The acquisition – the largest ever asset deal in the history of Real I.S. – involves four properties with a rental area of 69,400 m2 in central locations in Berlin, Dresden, Frankfurt and Cologne.
The vendor is global real estate investment manager Invesco Real Estate. The parties have agreed to keep the purchase price confidential.
The virtually fully let four properties built in 2015/16 comprise a total of 760 residential and 32 commercial units. A large part of the rental area amounting to around 57,400 m2 is accounted for by residential space, with residential units averaging around 75 m2 each. The remaining space is divided up between office space (ca 6,400 m2), retail (ca 4,800 m2) and archive space (ca 900 m2). The properties also offer more than 680 parking spaces.
‘This residential investment in prime locations is a milestone for us in many respects. The significant increase in our residential allocation lays a sound foundation with a balanced risk diversification for Real I.S.’s newly launched open-ended special fund with equity of approximately €300 million,’ said Axel Schulz, head of Investment Management at Real I.S. AG.
‘Our fund focuses on stable residential investments which, in the context of our investment strategy for the fund, enable us to target sustainable profitability and a balanced tenant structure, along with regional distribution by location and size. We have achieved this with the portfolio. We will be on the lookout for further attractive opportunities in the residential segment in the future as well,’ added Tobias Kotz, head of Client Relations & Capital Funding at Real I.S. AG.
Invesco purchased the four project developments in 2013 and 2014 respectively – in its first acquisitions in the residential property sector in Europe. ‘We have meanwhile significantly expanded our European residential portfolio and have built it up to include 38 properties with 7,790 units across seven countries with an overall value of €2.3 bn. There is a steady increase in the demand from institutional investors for top quality residential properties, and we are also planning to consistently increase our exposure in this market and expand on a pan-European basis,’ commented Fabian Manegold, managing director – Transactions at Invesco Real Estate,
The portfolio includes the 66-metre high Westside Tower built in 2016 in Frankfurt and consisting of 244 residential units and an area of around 19,500 m2 dedicated to a kindergarten and gastronomy on the ground floor, the “Prager Carrée” in Dresden totaling 24,000 m2 over six floors, and the Quartier Alexander in Berlin and the Merheim Ensemble in Cologne.
BNP Paribas Real Estate brokered the deal.
