Pramerica Real Estate International AG
Sebastiano Ferrante - Pramerica
Sebastiano Ferrante, head of Germany for Pramerica Real Estate Investors said, "The sale represents an excellent outcome for Pramerica Real Estate Investors and our partner. Most important, this sale confirms the successful track record of European value-added transactions we have made on behalf of our clients for the last 15 years."
Munich-based Pramerica Real Estate Investors decided recently to take advantage of the strong run-up in German residential real estate prices when they, along with Berlin-based joint venture partner Kauri CAB Management GmbH, closed on the sale of a portfolio of 25 residential ‘Altbau’ properties in popular residential Berlin neighbourhoods, realising €78.6m. Pramerica, which is part of US insurance giant Prudential, typically operates on behalf of a wide range of institutional investors.
The portfolio, consisting of ever-popular 5-6 storey older buildings built in the years 1886 and 1913, has about 50,000 sqm of lettable space in the Neukölln, Kreuzberg, Schöneberg, Wedding, Tiergarten and Prenzlauer Berg neighbourhoods. The transaction comprised the remaining assets acquired through a joint venture that Pramerica Real Estate Investors formed in August 2011 with Kauri CAB to invest in residential apartment blocks in Berlin.
Over the last three years, the joint venture amassed 953 apartments, with Kauri CAB sourcing the acquisitions. Kauri CAB also oversaw the day-to-day property management, rental negotiations and refurbishment.
Sebastiano Ferrante, head of Germany for Pramerica Real Estate Investors said, "The sale represents an excellent outcome for Pramerica Real Estate Investors and our partner. Most important, this sale confirms the successful track record of European value-added transactions we have made on behalf of our clients for the last 15 years. We intend to leverage this experience to capitalize on future investment opportunities in the German residential sector."
Kauri CAB was set up in 2008 to take advantage of cyclical opportunities in the German property market, particularly residential in Berlin, and to be a co-investor as well as being a property and asset manager.
