Prudential Real Estate Investors and Kauri CAB Management GmbH today
announced the successful sale of a portfolio of 25 residential 'Altbau'
buildings located within the S-Bahn ring of Berlin for €78.6 million, or
about $105 million. PREI® is the real estate investment and advisory
business of Prudential Financial, Inc. (NYSE:PRU).
The portfolio, with buildings constructed between 1886 and 1913, with
more than 538,000 square feet available to be leased in the districts of
Neukölln, Kreuzberg, Schöneberg, Wedding, Tiergarten and Prenzlauer
Berg. The transaction comprised the remaining assets acquired through a
joint venture that PREI formed in August 2011 with Kauri CAB to invest
in residential apartment blocks in Berlin. PREI, which operates as
Pramerica Real Estate Investors in Germany, is acting on behalf of
Since 2011, 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, PREI's head of Germany said, "The sale represents
an excellent outcome for PREI 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 sectr."
Hagen Kahmann Genaral Manager of Kauri CAB Management added "We are
pleased how this transaction resulted in a win for us in Berlin's
sizable market with a strong rent culture."
Real estate advisor Angermann and European law firm Beiten Burkhardt
acted for the joint venture in the sale.
Kauri CAB Management GmbH, based in Berlin, was formed in 2008. The
company provides in-house a full suite of services within the German
residential real estate sector; including: deal sourcing, acquisition,
debt financing and structuring, asset management, property management,
rental optimization and architectural and construction services. The
principal has nearly 20 years of experience investing into real estate
in Germany, much of that specifically into residential properties in
Berlin. The company currently has 18 employees and manages approximately
€80mn of predominately residential assets.
PREI is a leader in the global real estate investment management
business, offering a broad range of investment vehicles that invest in
private and public market opportunities in the United States, Europe,
the Middle East, Asia, Australia and Latin America. Headquartered in
Madison, N.J., the company also has offices in Atlanta, Chicago, Miami,
New York, San Francisco, Frankfurt, Lisbon, London, Luxembourg, Munich,
Paris, Abu Dhabi, Mexico City, Sao Paulo, Hong Kong, Seoul, Singapore,
Sydney and Tokyo. Pramerica Real Estate Investors had gross assets under
management of USD $55.8 billion ($41.8 billion net), as of March 31,
2014. For more information, visit http://www.prei.com.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1.1 trillion of assets under management as of March 31, 2014,
has operations in the United States, Asia, Europe, and Latin America.
Prudential's diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential's iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit www.news.prudential.com.
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