Europa Capital has launched a new joint venture, on behalf of its latest value add fund, targeting residential investments in Berlin with specialist local residential asset manager, Skjerven Group.
The JV will agglomerate a substantial portfolio of residential assets in and around the city of Berlin with short to medium term value enhancement opportunities, and target a total GAV of €150 million.
The JV recently signed its first two acquisitions with a combined GAV of c. €20 million and is in due diligence on other residential led opportunities as well as actively pursuing a pipeline of further investments.
The JV builds on Europa Capital’s long-standing track record in the living sector, which represented 80% of its transactions activity in 2020. T0-date, Europa Capital has invested c. €1 billion into built PRS and student accommodation, totalling over 10,500 beds across the UK, Spain, Denmark and Germany.
Berlin based Skjerven Group will provide asset management services to the JV and will be responsible for sourcing new opportunities.
Jason Oram, Partner, Fund Manager at Europa Capital, commented: “We continue to view residential as one of the key value-add sectors, capable of producing attractive risk adjusted returns for our clients. We are confident that a strategy of this nature will work well in Berlin, one of Europe’s most dynamic capital cities with excellent long term growth prospects.”
James Farmer, Partner, Origination & Acquisitions at Europa Capital, commented: “We have been monitoring the Berlin residential market closely over the last year and firmly believe that the underlying fundamentals, in particular, favourable demographics, economic growth potential and limited housing stock are, in combination, supportive of investments in this asset class. We are pleased to have established a partnership with a leading local specialist such as Skjerven Group and look forward to building a high quality real estate portfolio with them.”
Einar Skjerven, owner & Managing Partner of Skjerven Group commented: “We are to contribute our high level of market knowledge and acquisition experience in Berlin to this new joint venture which is well timed for opportunity-oriented investors like Europa Capital and Skjerven Group.”
Europa Capital was advised on these initial transactions by BK Law, Gleiss Lutz, E & Y, CBRE & REELAB.