The German property market in general and the Berlin market in particular have suffered substantially from an overall economic downturn over the past few years. A source with JER in Europe tells GlobeSt.com the acquisition is a value-add play. The upside will be had not only through rental growth but also through refurbishment, modernization and the sale of units to existing tenants, he says.
"We have been analyzing potential transactions in the Berlin residential market for over one year and this acquisition represents, in our view, an excellent opportunity for value enhancement," says JER Europe director Angus Dodd in a prepared statement.
JER Partners has launched five private equity real estate investment funds since 1997 with over $2 billion in committed equity capital. These funds together with their financial partners have to date made gross investments of over $7 billion in real estate assets.
Most of JER's investments are in office, retail, multi-family and industrial properties. Other areas of investment include Commercial Mortgage-Backed Securities ("CMBS"), hospitality, healthcare related real estate and mezzanine financing.
This transaction with HP Stoessel is JER's second in Germany in the past year. In December 2004, JER provided mezzanine financing for the acquisition of six office buildings in Munich.
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