LJ Group, a privately owned multi-family office, has committed a total of EUR100 million of equity to Cresco Capital Group’s German student housing venture, Cresco Urban Yurt.
The partnership has made its first acquisition, a landmark building on Frankfurter Tor in Berlin, and will invest in excess of EUR60 million into the development.
The LJ Group has partnered with the Cresco Capital Group to create a student housing investment, development and operations platform to deliver managed student housing in leading German university cities.
The partnership plans to redevelop the building on Frankfurter Tor in Berlin into around 552 apartments, including ground floor and basement retail units.
The new student housing venture is led by Alexander Bürk, founder of the Cresco Capital Group, and Daniel Schuldig, a former senior private equity executive with real estate investment experience. Cresco Capital Group has acquired and developed properties valued at over EUR500m since its foundation in 2006, including Soho House Berlin.
LJ Group provides private office, investment advisory, alternative investment, trust and fiduciary services to individuals, family offices and foundations from offices around the world. The group’s alternative investment business makes direct investments in alternative assets classes, primarily in real estate and private equity connected to the real estate sector. LJ also backs Queensgate Investments, Osprey Equity Partners and Hadley Property Group.
Bürk says: “The acquisition of the Frankfurter Tor property exemplifies our focus on large redevelopment projects in prime locations. We secured planning for the property in a short space of time by working closely with the local planning authorities, providing a strong concept which will revitalise the property by integrating it into the local community.”
Andrew Williams, CEO of LJ Group says: "The team behind Cresco Urban Yurt has an excellent track record in the German real estate development market and we are very excited to work with them and encouraged by the very evident opportunities presented by the student housing market in Germany.”