Second CBRE IM/Vonovia deal in ’23 brings spend to €920m

Just months after concluding a €560 million deal with German housing giant Vonovia, CBRE Investment Management has exchanged contracts to acquire a further €360 million multifamily residential portfolio in Berlin, comprising about 1,200 apartments.

The entire portfolio is either newly built or being delivered in stages, with full completion expected by mid-2024. There are 16 buildings totalling 91,275 sq m located in three separate locations in the city. The portfolio has strong sustainability credentials and all apartments have a balcony or terrace, underfloor heating provided from local district heating and apartments are all close to local amenities and transport hubs.

“We have been provided a fantastic opportunity to add to the high-quality residential portfolio that we acquired earlier this year,” said CBRE IM’s head of transactions Germany Sebastian Ehrhardt. “This core portfolio aligns with two of CBRE IM’s investment strategies and meets their affordability, sustainability, and investment requirements. Recognising that we are in a unique investment window, we remain focused on unlocking further opportunities across Germany.”

The firm stated that the significant supply deficit of new homes in Berlin and with demand for multifamily homes high, those buildings not yet completed will let fast.

The acquisition from Vonovia announced in May comprised 1,350 units in five buildings of which two are located in Berlin, two in Munich, and one in Frankfurt

CBRE IM now has €10.9 billion of residential assets under management in EMEA for the firm’s direct and indirect strategies.