Deutsche Investment Successfully Implements Investment Strategy for First Office Fund

Hamburg/Berlin, 29 April 2021 – Deutsche Investment just sold an office property in Berlin for EUR 43.5 million, significantly boosting the performance of its institutional property fund in the “office” asset class. The property was bought by CLS Holdings pls, a pan-European investor in commercial real estate listed on the London Stock Exchange (FTSE 250). The transfer of benefits and burdens took place on 1 April 2021. The property, which had been acquired for the “Deutsche Investment – Büro I” separate asset pool in September 2018, was successfully sold in conjunction with a portfolio optimisation. The rate of return on the asset level is about 45 percent (IRR). The IRR achieved on the fund level has now increased to around 19 percent (since the fund launch in September 2018), while the share price has gone up to c. EUR 143/share.

Built in 1996, the six-storey office property is located on Kaiserin-Augusta-Allee in the north-west part of Berlin’s Charlottenburg district, and consists of two adjacent buildings directly overlooking the River Spree. The lettable area adds up to around 8,700 square metres, complemented by 93 tenant parking spots. The direct riverside location and the convenient transport links underscore the property’s locational quality. There are several bus stops in the immediate vicinity that offer direct service connections to downtown West Berlin and to the borough of Mitte. The entire sales proceeds have already been invested seamlessly in the acquisition of two office properties located in Cologne and Nuremberg, respectively, that boast attractive risk-reward profiles and belong in the core segment.

“The successful development of our first office real estate fund, and the feedback from our institutional investors show that demand for office investments remains very strong. Wishing to capitalise on the success, we are now working on the concept design for our second office real estate fund, and we already received the first capital commitments for it,” said Enver Büyükarslan, the main shareholder of Deutsche Investment.

“As with the first fund, we will primarily seek to buy office properties in Germany’s ‘Big 7’ cities as well as in selected B- and C-class cities for this successor fund. The first strategy-compliant assets in our deal pipeline are already undergoing their pre-acquisition audits,” added Klaudia Spychala, Transaction Manager at Deutsche Investment KVG.

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Deutsche Investment Successfully Implements Investment Strategy for First Office Fund

Hamburg/Berlin, 29 April 2021 – Deutsche Investment just sold an office property in Berlin for EUR 43.5 million, significantly boosting the performance of its institutional property fund in the “office” asset class. The property was bought by CLS Holdings pls, a pan-European investor in commercial real estate listed on the London Stock Exchange (FTSE 250). The transfer of benefits and burdens took place on 1 April 2021. The property, which had been acquired for the “Deutsche Investment – Büro I” separate asset pool in September 2018, was successfully sold in conjunction with a portfolio optimisation. The rate of return on the asset level is about 45 percent (IRR). The IRR achieved on the fund level has now increased to around 19 percent (since the fund launch in September 2018), while the share price has gone up to c. EUR 143/share.

Built in 1996, the six-storey office property is located on Kaiserin-Augusta-Allee in the north-west part of Berlin’s Charlottenburg district, and consists of two adjacent buildings directly overlooking the River Spree. The lettable area adds up to around 8,700 square metres, complemented by 93 tenant parking spots. The direct riverside location and the convenient transport links underscore the property’s locational quality. There are several bus stops in the immediate vicinity that offer direct service connections to downtown West Berlin and to the borough of Mitte. The entire sales proceeds have already been invested seamlessly in the acquisition of two office properties located in Cologne and Nuremberg, respectively, that boast attractive risk-reward profiles and belong in the core segment.

“The successful development of our first office real estate fund, and the feedback from our institutional investors show that demand for office investments remains very strong. Wishing to capitalise on the success, we are now working on the concept design for our second office real estate fund, and we already received the first capital commitments for it,” said Enver Büyükarslan, the main shareholder of Deutsche Investment.

“As with the first fund, we will primarily seek to buy office properties in Germany’s ‘Big 7’ cities as well as in selected B- and C-class cities for this successor fund. The first strategy-compliant assets in our deal pipeline are already undergoing their pre-acquisition audits,” added Klaudia Spychala, Transaction Manager at Deutsche Investment KVG.

Download the Press Release as PDF

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