Israeli group Brack Capital boosts German residential to 9,000 units

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Düsseldorf-based Brack Capital Properties, a unit of Tel Aviv-listed Brack Capital Real Estate, said it expanded its German housing portfolio by 1,600 units to 9,000 in the second quarter. The latest ac­quisitions, of 267 units, are mainly in North Rhine-Westphalia and Hanover.

BCP now owns 9,000 units in Leipzig, North Rhine-Westphal­ia and the Bremen and Hanover area, it said. It also owns 380,000 sq.m. in retail space and two developments in Düsseldorf with over 1,000 units, altogether valued at €1.05 bn. It recently acquired a portfolio of residential and office buildings in Düsseldorf for €13m, funded by a non-recourse loan of €8m from a German bank. The assets are let to various tenants, with an occupancy rate of 84%, and should generate an annual income of €1.1m.

BCP also recently bought the Widumer Platz shopping Centre in central Castrop-Rauxel in North Rhine-Westphalia, a five-story property built in 1990 with 13,100 sqm lettable retail space for 19 stores, and five medical clinics. The seller was Romanian group Dinu Patriciu Global Properties (DPGP) which had bought the asset from Deutsche Land plc, and prior to that was the single asset in a €10.7m fund issued by the IC Group. The asset will need at least €3m capex prior to its 25th anniversary next year, said BCP.

In a statement, COO Claus-Dieter Trapp commented that BCP looks at assets in A, B and C locations, analysing each individual property minutely for tenant structure an local preferences. “Over recent years, BCP has significantly expanded its property portfolio with multi-family housing as well as retail assets and our own project development activities. We want to expand further in these three business areas.”

Brack Capital Real Estate is internationally active in investment, development and asset management, with $5bn holdings in the US, Germany, India, Russia, UK, Spain, Italy, Cyprus and Israel.