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Blackstone buys 2,500 Berlin resi portfolio for €425m sparking financing mandate

By James Wallace - Tuesday, May 08, 2018 11:02

Blackstone’s European core-plus platform has acquired a portfolio of 2,500 residential portfolio in central Berlin from a joint venture led by KauriCAB Management and Apeiron/Ailon for approximately €425m, CoStar News understands.

The German multi-family portfolio acquisition is likely to be financed although there is no confirmed lender at this stage, CoStar News understands.

However, given the returning positive economics for European CMBS, and the popularity of German multi family as CMBS collateral, the possibility that the financing mandate could attract interest from CMBS issuing investment banks cannot be overlooked.

Moreover, Blackstone has been the single largest sponsor of European CMBS in recent years. Based on Blackstone’s historic leverage appetite, a potential financing package could come in at up to 75% loan-to-cost (LTC), which would imply a whole loan up to almost €320m.

The portfolio is principally comprised of 2,500 residential units located in Berlin, the majority of which are concentrated in the prime inner-city districts, with additional units in Brandenburg and Magdeburg.

James Seppala, head of European real estate at Blackstone, said: “This acquisition is consistent with Blackstone Property Partners Europe’s strategy to acquire well-located residential properties in growth cities and to hold and manage them on a long-term basis on behalf of our investors. Berlin continues to benefit from strong demographic and economic trends, and we are excited by the opportunity to expand our German residential platform in one of Europe’s most dynamic cities.”

CBRE and Hengeler Mueller acted for Blackstone, and BNP Paribas and Greenberg Traurig advised the sell side.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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