Round Hill Capital fund buys German residential portfolio

Round Hill Capital fund buys German residential portfolio
Image: Courtesy of Round Hill Capital

Round Hill Capital managed European Residential Income Fund II (ERIF II), has acquired a 1,000 unit residential portfolio in East Germany from a subsidiary of Orlando Real Berlin GmbH, Berlin.

Spread across 13 clusters in Halle and Magdeburg, the deal includes 982 residential units spanning 52,819 sqm and 4 commercial units.

The deal is the fourth transaction for the ERIF II closed-ended, Core / Core Plus commingled investment fund, after it completed three multifamily housing deals in the Netherlands in December of 2020. Managed by Round Hill Capital, the fund invests in multifamily housing assets in Europe offering attractive long-term yield, focusing on comparatively stable residential markets including the Netherlands, Germany and the Nordics.

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“The first transactions for the ERIF II fund in Germany and the Netherlands, underline the strength of European multifamily investment activity and Round Hill Capital’s ability to identify and complete transactions with the benefit of our long-standing presence and track record in these markets,” said Michael Bickford, founder and CEO of Round Hill Capital.

The current economic conditions have tested many asset classes, yet accommodation continues to provide consistently stable income streams at a time when yield is under intense pressure and this is driving investment demand from international institutional investors. We look forward to continuing to invest further capital in the near future,” he added.

“Magdeburg and Halle are extremely attractive locations, Magdeburg being the state capital of Saxony-Anhalt with strong transport links to other major German cities such as Berlin and Leipzig and Halle is one of the top five largest cities in East Germany. We are drawn to these cities which demonstrate strong demographic trends, low unemployment and consistent economic growth,” added Dr. Marcus Eilers, Managing Director – Germany, Round Hill Capital.