Deutsche Investment just acquired two properties with a combined lettable area of around 4,400 square metres in the Charlottenburg and Neukölln districts of Berlin. The acquisition was undertaken for one of the investment manager’s individual mandates.
The property in Berlin-Charlottenburg divides into 29 residential and two commercial units. It is located in a quiet residential area near the Lietzensee lakefront and Charlottenburg Palace, with optimal access to public transportation. Given their sizes, the residential units are particularly well suited for singles, couples and young families, and the majority of them come either with a balcony or a loggia each. The commercial units are used as offices and eateries. The mixed residential/commercial building in Berlin-Neukölln divides into 34 residential units and one studio. It occupies a sought-after neighbourhood location close to Richardplatz, an area that features a rich variety of shopping amenities and a wide spectrum of food outlets. The long-term lease agreements in place at either property reflect the appeal of the two locations. “Dating back to the Belle Époque, the houses have a very robust building fabric. Moreover, the ongoing management of the properties presents opportunities to optimise rent revenues and to exploit any potential for infill densification. The quality of the assets and of their locations forms an optimal basis for a low-risk, long-term investment,” explained Gilbert Merz, Director Transaction Management at Deutsche Investment Kapitalverwaltung AG.
During the transaction, Deutsche Investment was advised in legal matters by the law firm SNP Rechtsanwälte München and with respect to the technical due diligences by Consulting Partners Hamburg. Wüest Partner acted as appraisers.
“In Berlin, demand for housing has for years exceeded the available housing supply. The very low vacancy rate of currently less than one percent illustrates the need for rental apartments. As far as the anticipated development of the market goes, we concentrate our investment strategy on existing buildings with value-add potential in keenly sought-after locations and areas likely to become premium locations in the future. The two properties in Berlin-Charlottenburg and Berlin-Neukölln are therefore truly a gain for our single mandate,” elaborated Sasa Basic, Member of the Management Board of Deutsche Investment Kapitalverwaltung AG.