Deutsche Investment finances ‘Downtown Living Portfolio’ with €76.5m MünchenerHyp senior loan

By James Wallace - Wednesday, May 16, 2018 8:33

Deutsche Investment has financed a €136m 13-strong residential and commercial portfolio acquisition in Hamburg dubbed the “Downtown Living Portfolio” from Denmark’s De Københavnske Ejendomsselskaber with a €76.5m senior loan from MünchenerHyp.

The portfolio comprises 325 apartments with a floor area of some 20,700 sqm, 51 commercial units with a usable area of some 7,500 sqm and over 200 underground and outdoor parking spaces. The properties are centrally located in Hamburg and are close to fully let.

The new MünchenerHyp financing is also secured by two additional properties acquired in March 2017 – 30 residential units in Ottensen and 94 residential units in Hamburg-Bramfeld – for around €20m. Together the 15 properties are valued at approximately €156m, which implies a portfolio LTV of 49%.

Dr Jan Peter Annecke, head of commercial real estate finance at MünchenerHyp, said: “This loan is very much in line with MünchenerHyp’s strategic aim of offering large-scale loans for portfolios more intensively than in the past. The bank is focusing in this regard on Germany and western Europe, including the UK. In certain cases, we also offer lending for multinational portfolios.”

Deutsche Investment acquired the 15 residential and commercial properties through Wohnen IV, an open-ended real estate fund managed by Deutsche Investment Kapitalverwaltungsgesellschaft. The fund has a 50% leverage ceiling.

The fund, which has a target size of €250m, is aimed at German institutional investors and counts Basler Versicherung as its cornerstone equity investor provided an initial €50m. The current volume is approximately €160m. EB GROUP is the fund’s asset and property management partner.

Florian Mundt, managing shareholder of Deutsche Investment, said: “Opportunities to acquire such a large and centrally located portfolio in Hamburg are currently very rare. We began intensive due diligence on this transaction at an early stage and identified a substantial potential with the properties for infill. Working together with MünchenerHyp was extremely satisfactory. The bank also gave us active support with numerous other aspects of the purchase. For us, this large-scale loan is a sign of recognition for our business model.”

The fund invests primarily in well-located residential properties in the cities of Hamburg and Berlin. “The capital for further acquisitions is €50m. Smaller volumes in the lower eight-digit range may complete this amount,” adds Mundt.

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

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