Skjerven continues buying Berlin residential for Heimstaden

Swedish housing group Heimstaden Bostad AB has continued its buying spree of Berlin residential accommodation with another sizeable investment, paying scant attention to the negative headlines emanating from the German capital after its recently-imposed 5-year rental freeze and other rent-dampening measures.

Acting for the Swedish group is the Berlin-based Skjerven Group who is buying the fourth portfolio in Berlin for Heimstaden. Early in May, Skjerven as investment manager bought a portfolio of 300 apartments and commercial units for €54m for Heimstaden, and will take over the asset management of the portfolio. The assets are located in Mitte, Moabit and Wedding, with one property in Prenzlauer Berg.

CEO Einar Skjerven remains bullish on Berlin residential at the right price: “The current price levels continue to allow for purchases at reasonable long-term returns. As a consequence, the Berlin housing market should further continue to gain in importance as a safe haven for investors over the coming months and years.”

Heimstaden has subsequently added to its holdings, with Skjerven as local partner buying a further 70 units for €15m, or about €2,600 per sqm. This brings Heimstaden’s total investment in Berlin since 2018 to about €265m for 1,500 apartments, which it plans to hold long-term and to add to in both Berlin and what it sees as other growth regions of Germany. Einar Skjerven said, “We’re only acquiring properties that offer an adequate yield despite the rental cap. We’re not envisaging an imminent resale.”

The Skjerven Group, led by charismatic Norwegian Einar Skjerven, has come a long way since its early days as an investor and trader in Berlin properties, moving up the value chain to offer a full range of transaction, asset management, financing and fund management services, as well as advising institutional investors and family offices.