Phoenix Spree Deutschland has exchanged contracts to purchase a portfolio of four properties in Berlin. The fund has also completed the first apartment sale in its latest condominium programme in Boxhagenerstrasse, Berlin.
The four Berlin properties are being bought for EUR18.75 million (GBP16.89million), excluding acquisition costs; representing a price per square metre of EUR1,970. Altogether they are buying 132 residential units and 16 commercial units. They say there are potential reversionary rental opportunities (opportunities to increase the rent) through modernisation, refurbishment and re-letting at current market rates. In the medium term, there is also the potential to increase the residential footprint.
After the deal goes through (including other recent acquisitions) Berlin will represent around 74% of the fund’s portfolio value.
The four properties acquired represent over 9,500 square metres of lettable space, 90% of which is residential. Subject to planning permissions, there is scope for attic conversion and the courtyards also offer potential for accretive capex measures as well as new-build. The properties are located in the districts of Mitte and Wedding. Mitte is centrally located and already well established as a favoured location for tenants. Wedding is becoming an increasingly popular residential location and the properties are located in close proximity to the main retail area, benefitting from excellent public transport links.
In separate news, following the September launch, the first Boxhagenerstrasse condominium sale has completed, with a further three reserved, The condominium sale price equates to EUR4,195 per sqm, a 63% premium to its July 2015 acquisition value of EUR2,580 per sqm
PSDL : Phoenix Spree buys four buildings in Berlin