Round Hill Capital announced on Thursday that its European Residential Income Fund II (ERIF II) has completed a deal to acquire a 1,000-unit residential portfolio in East Germany from a subsidiary of Orlando Real Berlin.
Spread across 13 clusters in Halle and Magdeburg, eastern Germany, the deal includes 982 residential units spanning 52,819 m2 and four commercial units. The properties have high occupancy rates and Round Hill said that it plans to unlock further value by leveraging the expertise of its on-the-ground German team.
The deal is the fourth transaction for the ERIF II closed-ended, Core/Core Plus commingled investment fund, after it completed three multifamily housing deals in the Netherlands in December 2020. Managed by Round Hill Capital, the fund invests in multifamily housing assets in Europe offering attractive long-term yield, focusing on comparatively stable residential markets including the Netherlands, Germany and the Nordics.
ERIF II is targeting multifamily housing assets with mass market affordability in strong micro-locations that exhibit positive demographic and macroeconomic trends, persisting supply/demand imbalances and strong transport links.
Michael Bickford, founder and CEO of Round Hill Capital commented: ‘The first transactions for the ERIF II fund in Germany and the Netherlands, underline the strength of European multifamily investment activity and Round Hill Capital’s ability to identify and complete transactions with the benefit of our long-standing presence and track record in these markets .The current economic conditions have tested many asset classes, yet accommodation continues to provide consistently stable income streams at a time when yield is under intense pressure and this is driving investment demand from international institutional investors. We look forward to continuing to invest further capital in the near future.’
BNP Paribas brokered the deal. Financial details were kept confidential.
