Covivio announces the acquisition of a residential portfolio in Berlin, for an amount of approximately €130 M. Located in very attractive districts, the 19 assets acquired represent a total surface of 41,500 m² and will benefit from a works and asset management program to improve quality and environmental efficiency. With this operation, Covivio is continuing its investment strategy in Germany, in order to expend its residential portfolio and benefit from the positive trends of the market.
The acquired properties are predominantly located in the vicinity of previous Covivio assets in most sought-after urban districts as Mitte and Charlottenburg, and strong upcoming green locations as Spandau. Most of these assets, typical historical Berlin buildings, have an option to build additional living space through loft conversions and are already divided into condominium. The transaction, closed at the end of June and for which Covivio was advised by HPBA Berlin, has a yield of 3.5%.
The average rent for the housing portion of the portfolio is currently €8.40/m², well below market rents. Thanks to its active asset management approach and to its sustainable development-oriented works program, Covivio intends to upgrade the quality, comfort and attractivity of these assets.
Dr. Daniel Frey, CEO Germany of Covivio, says: “Covivio’s investment strategy is focused on central locations, combining living and working environments, with excellent public transport links. This approach is also key to achieve our sustainability and environmental efficiency goals. This strategy is the most value-creating because these neighbourhoods are where people and businesses want to be and growth.”
Covivio is the first major landlord in Germany to have its entire housing stock and property management certified according to the HQE standard (Haute Qualité Environnementale). The company is regularly awarded top marks in corresponding customer surveys, including the Fairest Landlord’s annual one.