LaSalle Encore+ Fund makes major Berlin residential acquisition
LaSalle Investment Management (LaSalle), a global real estate investment manager, has acquired a modern residential asset in the centre of Berlin on behalf of the Encore+ Fund.
This is the first residential investment since the inception of Encore+ in 2006.
This is the Encore+ Fund’s first residential investment; this is a result of Encore+’s strategy to increase its exposure to alternative assets, particularly in the strongest Western European cities. Berlin has seen a major uplift in demand as the city’s status has risen in recent years, driven by its success as a hub for digital and creative industries as well as the expansion of Government departments returning to the City. Furthermore, it was recently ranked the world’s most liquid commercial property market.
Located at Lindenstrasse 73-75b, the residential asset was constructed in 2014 and consists of approximately 200 units, each with a balcony or a terrace, and offers underground parking. It is centrally situated in Berlin’s popular Kreuzberg district, one of the most attractive and lively neighbourhoods in the city with a mix of offices, retail, gastronomy, and cultural attractions. The asset lies in an excellent location, only a short walking distance from Gendarmenmarkt and Checkpoint Charlie.
David Ironside, Fund Manager of Encore+, LaSalle Investment Management, says: “We are really happy to continue our asset typology diversification thanks to this acquisition. This is an exciting first residential investment that will provide the Fund with long-term stable income. Berlin’s residential market is highly liquid and offers a very beneficial supply/demand dynamic, with current supply covering less than 1 per cent of actual housing demand.”
Andreas Wesner, Head of Investment for Germany at LaSalle Investment Management, says: “This is the ideal first residential investment for the Fund since it is a modern building in an excellent location in Berlin. In the past months we have refined the Fund’s investment strategy in the residential segment and Lindenstrasse 73-75b fulfils all our targeted criteria. The asset is a great starting point for building up a portfolio of similar assets for our investors.”
LaSalle was advised on this transaction by Mayer Brown LLP (Legal), Arcadis (Technical), CBRE (Buy side) and Cushman & Wakefield (Valuation). The seller was advised by Greenberg Traurig LLP (Legal) and Colliers (Transaction Broker).