Tikehau Capital, the global alternative asset management group, and BlueRock Group AG (BlueRock), a real estate investment and asset manager based in Zurich and Berlin, have formed a joint venture to gradually build up a residential real estate portfolio in Berlin.
This joint venture will enable the acquisition of approximately 1,000 residential units with value-add potential within Berlin's S-Bahn ring. The individual lot sizes of the apartment buildings to be purchased for this purpose are expected to be between 2 and 8 million euros.
The establishment of the joint venture is in line with Tikehau Capital's pan-European value-add strategy, which places particular emphasis on sustainability and ESG criteria. The central goal is to increase energy efficiency and ensure the long-term future viability of the properties.
For the selection of acquisitions and implementation of the active strategy, BlueRock uses its MB Advisors platform, which is firmly established in the Berlin market. The 25-strong team working here takes care of sourcing, due diligence and purchase of the properties.
Steffen Meinshausen, Head of Real Estate Germany at Tikehau Capital, comments: "The Berlin housing market is one of the most exciting and at the same time most challenging markets in Europe. With our joint venture, we are creating the basis for targeted investment in multi-family buildings with value-add potential in order not only to expand the range of products on offer, but also with the aim of securing the future viability of the properties through ESG-oriented measures."
Ronny Pifko, CEO of BlueRock, adds: "With Tikehau Capital, we have a financially strong partner at our side who will support us in consistently implementing the planned value-add concept. By adding storeys, densifying and resolving modernization backlogs, we want to leverage the existing potential of the properties and at the same time create urgently needed living space in Berlin."
BlueRock is a proven expert in the sustainable development of Berlin residential real estate. The investment strategy takes a granular approach that combines economic viability with environmental and social goals.
A purchase agreement already exists for a first property in the Schöneberg district. The 5-storey residential building, built in 1903, comprises approx. 30 residential units with a total lettable area of around 2,500 m².
Tikehau Capital and BlueRock were legally supported in the transaction by McDermott Will & Emery (Tikehau Capital) and Greenberg Traurig (BlueRock).
Further acquisitions are currently being examined. In addition, further properties have already been identified, several of which are currently in exclusivity and in the due diligence phase.
