Patrizia has acquired a majority 90% stake in a new major residential development in the Carossa Quarter, located in Berlin’s Spandau district, from funds managed by Castlelake, L.P., on behalf of its institutional clients.
Kauri CAB, a Berlin-based investor specialized in the acquisition, development and management of city quarters, remains minority shareholder with a 10% stake and will act as a development partner.
On completion in 2025, the 125,000 sqm net residential development is projected to have a GDV of c. €750 millionaid Patrizia in a statement.
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Located 3km north of the important Spandau train station, the c. 10 hectare freehold site benefits from zoning and planning consents for a waterfront city quarter with views across the Havel.
Approximately 101,000 sq m of new residential space will be built across 17 new buildings and 4 listed buildings, delivering 1,800 residential units comprising predominantly traditional housing, as well as a proportion of micro living, senior living, co-living and affordable housing.
Stuart Reid, Managing Director, Real Estate Development at Patrizia, commented: “Securing our investment in this project, particularly one of such scale, is testament to the skill of our team to identify, negotiate and execute complex transactions, all against the backdrop of Covid-19. Residential real estate has been in Patrizia’s DNA since the company’s founding and we are thrilled to be delivering this large-scale development project which involves the creation of an entirely new neighbourhood with beneficial shared community facilities in one of Europe’s most dynamic cities.
Carossa also incorporates a total of c. 30,000 sq m of commercial space comprising ca. 25,000 sq m value-add office and retail property and c. 5,000 sq m of shared facilities to form an integral part of the new residential development. The existing 1940s listed office and retail property is to be refurbished and repositioned in parallel to the development of the residential quarter.