Deutsche Investment acquires two mixed residential/commercial buildings along with a multi-family building with a combined lettable area of around 5,200 square metres in the Tiergarten district of Berlin’s borough of Mitte. The acquisition was undertaken for one of the investment manager’s individual mandates.
The purchased properties, which date back to the end of the 19th and early 20th century, are located on Gotzkowskystrasse and Ufnaustrasse in the Moabit sub-district. The mixed residential/retail building on Gotzkowskystrasse divides into 30 residential units and three commercial units. It if almost fully tenant-occupied. The two buildings on Ufnaustrasse provide a total lettable area of around 3,200 square metres, that breaks down into 60 residential units and four commercial units. Eleven let parking spots are also part of the premises. The total consideration paid for the units is nearly EUR 18 million.
“These two transactions had their very own charm for us. The properties represent attractive period buildings in central sought-after locations in the northern part of the Tiergarten district near the Neues Ufer canalside, and we are rather pleased to add them to our portfolio for the purpose of long-term property asset ownership,” reported Nina Sobotta, Transaction Manager for the Southern Region and for Berlin/Brandenburg at Deutsche Investment Kapitalverwaltung AG. In the case of the properties on Ufnaustrasse, Deutsche Investment has identified an infill development potential that adds up to more than 1,000 square metres. Enver Büyükarslan, the Director for Transaction Management at Deutsche Investment Kapitalverwaltung AG, added: “Due to the present demand situation on the rental market, we are in the project planning phase for additional housing here. Our in-house property development team is currently planning to create additional residential accommodation through new-build construction and expansion works in combination with upgrades of the existing buildings. Specifically, the plans project about 30 additional residential units that will be created by closing a gap site, adding floors and by converting attics.”
During both transactions, Deutsche Investment was advised on legal aspects by the law firm SNP Schlawien Partnerschaft and in regard to the technical due diligences by CBRE and by Drees & Sommer.