Benson Elliot Capital Management
November 17, 2016 Benson Elliot adds to UK retail portfolio with acquisition of Slough Retail Park

Benson Elliot Capital Management, the UK-based private equity real estate fund manager, on behalf of its pan-European fund, Benson Elliot Real Estate Partners IV L.P. (“BEREP IV” or the “Fund”), has acquired the Slough Retail Park in Slough, Berkshire from Standard Life. The acquisition takes Benson Elliot’s total retail holdings in the UK above 1.7 million sq ft.

Slough Retail Park (the “Park”), originally developed in 1988 and extended in 1997, comprises 151,000 sq ft of lettable space across eight units, as well as 474 car parking spaces. The Park has a strong occupational history and is currently fully let to eight tenants, including Carpetright, DFS and The Range. It is located in a prime location, close to the Slough Trading Estate on the A4 Bath Road and just two kilometres from Slough town centre. The Park is easily accessed by car or public transport, and accessibility is set to further improve with the arrival of Crossrail in 2019.

James Jakeman, Partner at Benson Elliot commented: “This is the third UK retail asset we have acquired on behalf of BEREP IV, reflecting our continued confidence in the sector for carefully selected assets. Home to a large concentration of major international businesses, Slough is a rapidly improving sub-market with a consumer catchment well positioned for future growth ahead of the imminent arrival of Crossrail.”

Benson Elliot announced the final close for BEREP IV earlier this year following an over-subscribed fundraise which exceeded an initial target for the Fund of €600 million. Including c. €75 million of co-investment, the total available equity for the Fund is above €700 million. To date, BEREP IV has completed 11 investments across six countries, and investors have already benefitted from five early realisations, which together have delivered an equity multiple above 2.5x.

Cube Real Estate has been appointed asset manager by Benson Elliot.

ENDS

For further information:

Benson Elliot
James Jakeman, Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

September 19, 2016 Benson Elliot completes sale of Berlin office landmark - Disposition of Berliner Volksbank headquarters crystallises 3x multiple on 2015 portfolio acquisition -

Benson Elliot, the UK-based private equity real estate fund manager, acting on behalf of its pan-European fund Benson Elliot Real Estate Partners IV (“BEREP IV” or the “Fund”), has sold Budapester Straβe 35, the last asset in its Berlin office portfolio. The buyer was a US-based institution advised by Barings Real Estate Advisers GmbH (formerly Cornerstone Real Estate Advisors).

Benson Elliot led a consortium which acquired a five asset portfolio from Berliner Volksbank eG in March 2015. Budapester Straβe 35, the final asset in the portfolio owned by the Fund, is a nine storey office building prominently fronting Olof-Palme-Platz in Berlin’s City West sub-market. Constructed in 1985, and subsequently used as the headquarters of Berliner Volksbank, the building comprises 9,548 sqm of net lettable area overlooking Berlin’s Tiergarten. Since acquiring the building, in a joint venture with Rockstone Real Estate and Klingsöhr Projektentwicklung, Benson Elliot has submitted a building application for development of a 15 storey office high-rise on the site, allowing for the creation of a larger, more efficient building.

Philipp Braschel, Benson Elliot Partner and Head of Germany, said:
“We identified an early opportunity to crystallise the value we created in this well-located package of Berlin properties. The entire team has done an impressive job of defining and executing a business plan; we’re confident the new owners of Budapester Straβe will carry forward the work we’ve started, enhancing further the value of this landmark property.”

Benson Elliot closed BEREP IV, its third pan-European value-add fund, in June 2016. The Fund was oversubscribed, and has approximately €700 million of capital at its disposal. To date it has completed ten investments across six counties, and investors have already benefitted from four early realisations, which together have delivered an equity multiple above 2.5x.

ENDS

For further information:

Benson Elliot
Philipp Braschel, Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

August 25, 2016 Proposals to transform Vicarage Field in Barking town centre submitted - Plans include modern retail, restaurant and leisure offer with more choice and variety; public consultation demonstrated support from majority of local communities; up to 1,000 full-time jobs to be created by the new development -

Benson Elliot and development managers Londonewcastle have submitted a planning application to London Borough of Barking & Dagenham for the redevelopment of the Vicarage Field Shopping Centre site in Barking town centre.

The plans comprise a comprehensive redevelopment of the existing shopping centre and adjoining buildings to provide a modern retail, restaurant and leisure offer with more choice and variety; as well as up to 850 high quality homes; a three-form entry primary school; a 6-8 screen cinema and 300-capacity music venue; a 150-room hotel; flexible enterprise space for start-up businesses; healthcare facilities and extensive public realm and green space.

The high quality mixed-used development, designed by architects Studio Egret West, supports the Borough’s vision for economic growth by delivering a wide range of benefits including up to 1,000 new full-time jobs, with a target of half going to local people. The proposals also support the Growth Commission’s report which identified Barking town centre as a priority opportunity to create a new city district with the variety and interest of London’s best centres.

Peter Cornforth, Director of Retail at Benson Elliot, said:
“This is an exciting milestone for our redevelopment plans, which we believe will support the creation of a vibrant town centre in Barking. We’ve been greatly encouraged by the positive feedback we’ve received from local communities and the Council and we look forward to continuing to work with them to make this project a reality. Our proposals support the Borough’s vision for new homes and the Barking town centre Housing Zone as well as local economic growth for the benefit of everyone. The regeneration of this key east London metropolitan centre will play a pivotal part in shaping Barking’s long-term future.”

Mark Bass, President of the Barking & Dagenham Chamber of Commerce, said:
“The redevelopment of the Vicarage Field site offers a fantastic opportunity to encourage more growth and investment in the town centre. New retail and leisure opportunities will provide new jobs, greater choice for local residents and attract more visitors to Barking, helping to invigorate the local economy and enhance the economic success of local businesses. We were excited to see the vision for the site at public exhibitions in March and look forward to seeing the project become a reality in the future.”

A full engagement programme with local communities, councillors and officers at London Borough of Barking & Dagenham was undertaken on the proposals, ahead of submitting the planning application.

A public consultation explaining the plans and seeking feedback was held between March and May 2016, which included an exhibition and a six-week programme of activities run by Barking-based organisation Studio 3 Arts. Over 1,000 people attended the consultation events and the Studio 3 experience included a pop-up garden at the shopping centre with performances from local artists and masterclasses in flower arranging, planting and potting.

Over 200 people responded to the consultation and the majority of the responses were positive with almost three quarters (74%) supporting the plans. The proposals can still be viewed at www.newvicaragefield.co.uk.

London Borough of Barking & Dagenham will now start its own consultation on the plans and a decision is expected to be made by the Council’s Development Control Board (DCB) later this year.

-END-

NOTES TO EDITORS

For further information please contact Hanna Smith, hs@londoncommunications.co.uk, 020
7612 8499 or Jonny Simmonds, js@londoncommunications.co.uk, 020 7612 8473.

About Londonewcastle
Londonewcastle is a multi-award winning developer of homes in London. Since establishment in 1995, the business has developed a reputation for consistently delivering residential-led mixed use developments that combine contemporary architecture and design-led interiors with an uncompromising attention to detail. Londonewcastle is committed to creating properties of the highest standard. The business is focused on new development and urban regeneration projects that aim to create a sense of place and sustainable community and in doing so, meet the long term needs of Londoners.

About Vicarage Field
Vicarage Field is located in the heart of Barking, on a 5.2 acre site, opposite Barking station.. The existing shopping centre was constructed in 1991, on the site of the former Barking FC football ground , and comprises 156,000 sq ft of retail space, together with 500 parking spaces. The scheme was previously home to food store anchor Asda, who relocated to a much larger town centre store in September 2015.

Benson Elliot acquired the Centre in June 2015 and have re-evaluated the site’s contribution to Barking, particularly in light of its previous planning consent for a 23 storey residential scheme and the town centre’s recent Housing Zone designation by the GLA.

About the Proposals
The proposals submitted to the London Borough of Barking & Dagenham would see the existing shopping centre redeveloped to create a mixed-use scheme comprising 275,994 sq ft of retail floorspace (A1-A5) use, up to 54,876 sq ft of leisure floorspace (D2), up to 13,450 sq ft B1 offices, up to 879,630 sq ft residential floorspace (C3), up to 83,390 sq ft hotel floorspace (C1), spare for a three-form entry primary school (D1), healthcare facilities (D1), a new cycle hub accommodating 286 bicycles for workers and visitors, plant and basement parking.

A continuous route from Abbey Grounds to Barking station would be created through the new development, significantly enhancing the public realm and building on the success of Barking Central and the upgrade of East Street. New landscaping and amenity space would create a more vibrant and welcoming environment, encouraging a sense of community and civic pride. Residents would also benefit from separate communal space made up of growing spaces, play space, seating areas and lawn areas arranged to create field patterns when viewed from the homes above.

About Studio 3 Arts

Studio 3 Arts is an award-winning, socially-engaged arts organisation based in Barking for nearly 30 years. It is part of Arts Council England’s National Portfolio and the lead organisation for Creative Barking & Dagenham. www.studio3arts.org.uk

view more

August 10, 2016 Benson Elliot extends German residential activities with major corporate investment - Controlling stake acquired in communal housing company with 6,700 residential units -

Benson Elliot, the UK based private equity real estate manager, has extended its German residential activities with the acquisition of a 74.9% stake in GWB Elstertal Geraer Wohnungsbaugesellschaft mbH (“GWB”) from its insolvent parent company, Stadtwerke Gera AG.

GWB is a communal housing company that owns and manages a portfolio of c. 6,700 residential units, encompassing 402,000 sqm across 330 assets, in Gera, the third-largest city in Germany’s Thuringia region. The remaining shares in GWB are owned by the City of Gera.

Benson Elliot intends to introduce best-in-class letting and operational management processes at GWB, to invest in refurbishing and leasing the company’s core residential properties, and to dispose of non-core assets and certain vacant and obsolete properties. The firm expects to work closely with the City of Gera, with the goal of expanding housing choice and decreasing portfolio vacancy. Frank Hirling has been appointed to assist Benson Elliot in overseeing the GWB team that will implement the value-add strategy.

Philipp Braschel, Benson Elliot Partner, said: “In a sustained low interest rate environment the German residential sector continues to offer attractive investment opportunities. We look forward to moving on from the current uncertainty surrounding GWB, which has been unsettling for tenants, employees and the local community.”

Benson Elliot was advised by Greenberg Traurig, Deloitte and VALTEQ.

ENDS

For further information:

Benson Elliot
Philipp Braschel, Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

July 28, 2016 Benson Elliot, Walton Street and Algonquin check out of Paris Pullman Hotel A joint venture between private equity real estate fund managers, UK-based Benson Elliot and US-based Walton Street Capital, L.L.C. (“Walton Street”) in partnership with Algonquin SA (the “JV”), has sold the Pullman Paris Centre hotel in Bercy, Paris.

The purchaser is a joint venture between French institutional investor, Cardif Insurance Company (a subsidiary of BNP Paribas) and Algonquin SA, who will remain operating partner and asset manager of the hotel. The sale was concluded in an off-market transaction.

The JV originally acquired the asset in October 2015 as part of an eight asset pan-European hotel portfolio located across Venice, Paris, Milan, Rome, Warsaw, Nuremberg and Brussels. Since then, the JV has also disposed of the Brussels asset from the portfolio, to an institutional hotel fund.

The 396-bed Pullman hotel is situated in an excellent location near the AccorHotels Arena. Following a full refurbishment in 2013, the asset has seen strong operational performance as a beneficiary of Bercy’s increasing prominence as a corporate destination.

Benson Elliot acquired the asset for an affiliate of BEREP IV (the “Fund”), its recently closed pan-European private equity real estate fund which was oversubscribed with approximately €700 million of capital at its disposal. The sale of the Pullman represents an early realisation for the Fund, the proceeds of which will be invested into new opportunities.

Trish Barrigan, Benson Elliot Senior Partner, said:
“This transaction offered a compelling opportunity to quickly realise returns on behalf of BEREP IV. We are already making good progress in terms of both investments and divestments, with this representing our third sale on behalf of the Fund, and we remain alert to new opportunities across European markets that will benefit from our strong underwriting capability and asset management expertise.”

ENDS

For further information:

Benson Elliot
Trish Barrigan, Senior Partner
Matilda Williams
+44 (0) 20 7808 8900
Matilda.williams@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

June 27, 2016 EXCLUSIVE: Benson Elliot hits €625m hard cap for BEREP IV

PERE, BEREP IV

view more

June 27, 2016 Benson Elliot reaches €625 million hard cap as it wraps up fundraising for BEREP IV Benson Elliot Capital Management, the UK-based private equity real estate fund manager, announces the final close of its pan-European fund Benson Elliot Real Estate Partners IV (“BEREP IV” or the “Fund”).

The fundraise was over-subscribed, exceeding an initial target for the Fund of €600 million. Including over €75 million of co-investment earmarked for BEREP IV (of which c. €50 million has already been deployed), the total available equity for the Fund will be above €700 million.

BEREP IV’s investment programme is well-advanced, with nine transactions in six countries already completed at final close. Investors in the Fund have also benefitted from two realisations: the sale of Kurfürstenstraße 87 in Berlin to a fund backed by a German professional pension scheme, and the sale of the Renaissance Hotel and Marriot Executive Apartments in Brussels to a European institutional hotel fund. These two early disposals delivered an equity multiple above 2.5x.

Marc Mogull, Benson Elliot Managing Partner, said: “Benson Elliot continues to find value and deliver performance for a broad range of investors in European real estate. We’ve worked hard to build a dynamic, high-performing operation where our interests and those of our investors are closely aligned. The market’s response to this latest fundraise validates our differentiated model, best in class talent and focused investment approach.

“As the events of the last week highlight, market uncertainty and change are constants in our world. Our investors expect us to exploit the opportunities volatile markets present, whilst keeping a careful eye on risk exposure. I’m confident that, as long as we keep the right team on the pitch, maintain our investment discipline and stay true to the mission we’ve been tasked with, we’ll continue to thrive.”

The capital for BEREP IV has been raised from a global group of c. 30 primarily institutional investors, including public and private pension funds, university endowments, sovereign wealth funds, insurance companies and family offices. Approximately 50% of the capital raised came from US investors, with 40% from European investors and the balance from the Middle East and Asia. Over 60% of the capital was from investors who had invested in a prior fund.

In the UK, BEREP IV has acquired Vicarage Field Shopping Centre in Barking, the Meadows Shopping Centre in Chelmsford and Guildford Business Park. On the Continent, the Fund has acquired prime hotels in Paris, Milan and other gateway cities, as well as several office and residential assets in Berlin and a shopping centre in Bologna.

ENDS

view more

June 20, 2016 Global investors unite to tackle risk Global real estate investors have launched a groundbreaking initiative which places the spotlight on effective investment risk management.

In an industry which saw US$1.2 trillion in real estate transactions during 2015 – a significant percentage of which reflects the pension’s savings of millions – the importance of effective investment risk management cannot be overstated.

The Global Investment Risk Management Forum (RMF) is the first of its kind, gathering CEOs, chief investment and risk officers from major institutional real estate investors, with the aim of developing the sector’s approach to risk management. In total, the RMF represents more than US$1 trillion in assets under management (AUM).

Convened by independent professional body RICS, the RMF meets regularly in London, New York and Singapore. In addition to sharing best practice and insights on trends shaping the real estate landscape, the RMF also engages leading risk management experts from other sectors, including insurance, equities and pensions markets.

“With the global financial crisis still fresh in the public psyche, the RMF demonstrates that the industry is taking its fiduciary duty seriously”, says RICS President & Managing Director at German fund manager Union Investment Real Estate, Martin Brühl. “We want to share knowledge on risk management, to develop our thinking as a sector and to lead by example when it comes to managing investment in a responsible and sustainable way.” He adds: “The RMF initiative is our response to today’s anomalies in the interest of greater financial stability: An artificially low interest rate environment engineered by central banks, competitive devaluation of currencies and a magnitude of asymmetric geopolitical risks, including the British EU Referendum, may lead to misallocation of funds and mispricing of risk.”

Philip Barrett, forum member and global chief investment risk officer at PGIM Real Estate, formerly known as Pramerica Real Estate Investors, commented: “A strong focus on investment risk management is an integral part of our investment process at PGIM Real Estate. We are pleased to support RICS in the launch of this global forum which will enable us to share investment risk management best practices with our peers”.

The long-term aim of the initiative is to embed an industry-wide dialogue on risk management and to ensure investment leaders and their clients, including the public at large, benefit from the collective insight.


Organisations involved in the initiative include:

Aberdeen Asset Management
Alpha Investment Partners
AXA Investment Managers – Real Assets
Benson Elliot Capital Management
CBRE Global Investors
GLL Real Estate Partners GmbH
LaSalle Investment Management
M&G Real Estate
Morgan Stanley Capital
PGIM Real Estate, formerly Pramerica Real Estate Investors
Schroder Real Estate Investment Management
UBS Asset Management
Union Investment Real Estate
WealthCap
WT Fund Management Pte Ltd


Notes to Editors

For more information, please contact:
Richard Stokes, RICS: +44 (0)20 7695 1602 / rstokes@rics.org

About RICS:
RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve. We accredit 118 000 professionals and any individual or firm registered with RICS is subject to our quality assurance. With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards. We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all.

view more

May 26, 2016 Benson Elliot trades €200 million of prime offices in Barcelona during an active 12 months

– Parc Glories sold to Inmobiliaria Colonial prior to construction start –

Benson Elliot, the UK-based private equity real estate fund manager, has agreed the sale of Parc Glories, its landmark office development in the Diagonal-Glories sub-market of Barcelona, to listed Spanish property company Inmobiliaria Colonial. Following Benson Elliot’s July 2015 sale of its Cornerstone development (in Poblenou) to UBS Asset Management’s Global Real Estate business, the sale of Parc Glories takes the total end value of Benson Elliot’s Barcelona disposals to c. €200 million over the course of 12 months.
Parc Glories is fully designed and permitted, and the project is expected to break ground imminently. Delivery of the 17 floor, 24,543 sqm, Battle & Roig designed building is expected in late 2018. On completion it will provide column-free floors of up to 1,800 sqm in the heart of Barcelona’s newest and most modern business district, adjacent to Plaza de las Glorias and abutting Barcelona’s famed Diagonal.

Trish Barrigan, Benson Elliot Senior Partner, said: “Benson Elliot made an early move into the recovering Barcelona market, with a focus on prime offices in Poblenou. That move continues to pay off for our investors. We have an ongoing investment programme in Barcelona, but aren’t averse to crystalising the value we’ve created when the opportunity presents itself. We couldn’t think of a better organisation to take this project forward than Colonial.”

During its ownership, Benson Elliot worked with local partner Urban Input to design and permit the building. In addition to providing what is expected to be the highest quality office space in Barcelona, Parc Glories will set new standards in sustainability, targeting the first LEED Platinum qualification in Barcelona.
Cushman & Wakefield and CBRE advised on the transaction.

ENDS

For further information:

Benson Elliot
Trish Barrigan, Senior Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

About Benson Elliot:
Benson Elliot Capital Management LLP (Benson Elliot), founded in 2005, is a leading independent private equity real estate fund manager, with c. €1.5 billion of equity under management. The UK-based, FCA regulated firm has a pan-European investment platform and has transacted in the UK, France, Belgium, Germany, Italy, Spain, Central Europe and Scandinavia. The firm is led by Marc Mogull, Trish Barrigan and Joseph De Leo.

Benson Elliot holds a diversified real estate portfolio, currently comprised of office, retail, hotel and residential assets. The Benson Elliot team has experience in delivering superior risk-adjusted returns through active and innovative investment management, investing successfully through market cycles.

view more

May 20, 2016 Benson Elliot’s Marc Mogull to chair Bank of England Commercial Property Forum

Benson Elliot Managing Partner Marc Mogull has been appointed Chairman of the Bank of England Commercial Property Forum, succeeding Ian Marcus. Mr. Mogull will be the Forum’s fourth chairman since its establishment in 1993.

The Commercial Property Forum was created to bring all sides of the property industry together in the aftermath of the commercial property crash of the early 1990s. It provides a valuable source of market intelligence to the Bank of England by convening senior industry figures to discuss market conditions and developments.

Commenting on his appointment, Marc Mogull, Managing Partner of Benson Elliot said: “I’m honoured to have been asked to take up this appointment, on behalf of an industry I’ve devoted my career to, and a collection of industry leaders I think so highly of. We have a collective responsibility to ensure that risks are well-understood, policymaking well-informed, and the effects of regulation carefully thought through. My goal is to sustain the dialogue between the industry and the Bank of England that was established over twenty years ago, building on the great work of my predecessor, Ian Marcus.”

view more

April 28, 2016 Benson Elliot takes Italian portfolio to €500 million with Bologna shopping centre acquisition Purchase of Centro Commerciale La Meridiana latest in a flurry of activity in Italy since 2014.

Benson Elliot, the UK-based private equity real estate fund manager, has acquired Centro Commerciale La Meridiana (“Meridiana”), a shopping centre in Bologna, Italy, through the acquisition of 100% of the share capital of Raptor Srl, the owning SPV. Meridiana was purchased from TMW Immobilien Weltfonds, an open-end global real estate fund controlled by CACEIS Bank Deutschland GmbH (depository bank).

Meridiana is a 35,000 sqm shopping centre anchored by an Esselunga hypermarket (which is not included in the transaction), Virgin Active fitness centre, 9-screen UCI Multiplex cinema, OVS and Unieuro. Other high profile tenants include Benetton, Sephora and Sisley. The centre, one of the largest in the Bologna area, lies five kilometres west of the city centre in an affluent and densely populated area. It comprises 42 units over two levels, with c. 1,650 parking spaces. Bologna is the capital of Italy’s Emilia-Romagna region, which is one of the wealthiest regions in Europe.

The acquisition of Meridiana marks the latest transaction in a busy period in Italy for Benson Elliot, which publicly called the turn of the Italian market in early 2014. Since then, the firm has acquired six properties across the country’s four largest economic regions (Lombardy, Lazio, Veneto and Emilia-Romagna), which collectively generate over half of Italy’s GDP. Benson Elliot’s Italian investments to date represent value of over €500 million, and comprise: the Westin Palace Hotel in Milan; the Westin Europa & Regina Hotel on the Grand Canal in Venice; the Sheraton Hotel in Rome; Monticello, a luxury residential development overlooking the Vatican in Rome; and the Terminal Nord retail park in Udine.

Joseph de Leo, Benson Elliot Senior Partner, said: “In April 2014 we announced our intention to be an early mover into a recovering Italian market, and we’re pleased with the progress we’ve made since then. Over the past 24 months we’ve secured a high quality portfolio in the four regions that underpin Italy’s investment markets and drive the Italian economy.

“Centro Commerciale Meridiana is the dominant shopping centre in an affluent, but under-served, retail trade area. We’ve identified a number of initiatives to add value, much as we have at Terminal Nord in Udine, and look forward to working with the centre’s retailers to deliver an enhanced shopping experience for customers and an attractive return for Benson Elliot’s investors.”

Europa Risorse, the Italian asset, development and fund management business, has assisted Benson Elliot throughout the due diligence and acquisition process.

ENDS

For further information:

Benson Elliot
Joseph de Leo, Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

January 27, 2016 Benson Elliot extends Berlin activities with €300 million Europacity project - Residential-led development set for prime waterfront site in Berlin Mitte -

Benson Elliot, the UK based private equity real estate manager, has acquired a 2.5 hectare mixed-use site in central Berlin, fronting the Spandauer Schifffahrtskanal, from listed Austrian property company CA Immo. The off-market acquisition in Europacity – Berlin’s largest urban renewal project – allows for the development of 70,000 sqm of residential, retail, restaurant and office space.

The Europacity project has transformed c. 40 hectares to the north of Berlin’s main railway station – an area which lay derelict for decades – into a new, mixed-use city quarter. The area lies a short walk from the Bundestag, various federal ministries, the Charité (Europe’s biggest university hospital) and Humboldt University.

Europacity has become a magnet for large office users, hotels, retailers and cultural facilities (including the iconic Hamburger Bahnhof – Museum für Gegenwart). With over two hectares of Europacity devoted to parks, and a kilometre of waterfront along the Spandauer Schifffahrtskanal, Europacity has also seen the development of some of Berlin’s most desirable housing.

Benson Elliot and joint venture partner Kauri CAB Development, a specialist Berlin residential asset manager, intend to create a lively and attractive urban residential quarter, fully integrated into Europacity’s working, living, cultural and recreational network. Current plans are for the construction of c. 500 multi-family apartment units, on top of ground floor restaurants and cafes. The project will also incorporate c. 10,000 sqm of commercial and mixed-use space together with a day-care centre.

Philipp Braschel, Benson Elliot Partner, said: “The Europacity site provides Benson Elliot with a unique opportunity to create high-quality rental housing right in the heart of Berlin, whilst making a significant contribution to the city’s sustainable development. Berlin is going from strength to strength; together with our acquisition last year of Berliner Volksbank’s City-West headquarters, our Europacity purchase demonstrates our ongoing commitment to Berlin as an investment destination.”

Hagen Kahmann, Managing Partner KauriCAB Development, said: “This area is one of the city’s most interesting new living quarters. Our goal is to contribute to the reshaping of Berlin, to emphasise the city’s international appeal and to provide attractive rental apartments that will help meet Berlin’s growing housing needs.”

Guido Schütte, Director at CA Immo Berlin, said: “CA Immo has successfully executed its operations at Europacity, not only as an urban developer, but also as an investor, with projects such as the Tour Total, the John F. Kennedy House and the Intercity Hotel. We plan on continuing this strategy with other initiatives including the development of the new KPMG building. The sale of this plot to a major investment partner such as Benson Elliot is significant, as it validates the area as a dynamic development destination.”

ENDS

For further information:

Benson Elliot
Philipp Braschel, Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more

January 6, 2016 Benson Elliot makes early exit in Berlin Benson Elliot, the UK-based private equity real estate fund manager, has made an opportunistic disposal of a Berlin office asset following an unsolicited offer. The sale underlines the Company’s ongoing ability to make the right stock selection choices and find value as the property cycle in Europe advances.

Benson Elliot Real Estate Partners IV acquired Kurfürstenstraße 87, an eight storey, 6,192 sqm office building, in March 2015, alongside a second Berlin property, Budapester Straβe 35. The two buildings were acquired in joint venture with Klingsöhr Projektentwicklung and Rockstone Real Estate, in a sale leaseback transaction with Berliner Volksbank eG.

Kurfürstenstraße 87 has been sold at a 4.0% rental yield to a fund backed by a German professional pension scheme, advised by Cornerstone Real Estate Advisors. The sale will deliver BEREP IV a 2.4x multiple on its investment.

Constructed in 1929 as the headquarters of Lenz & Co (“Lenz-Haus”), the listed building – which features a shell limestone façade and entrance lobby – was designed by famed German architect Heinrich Straumer. Straumer, who also designed the iconic Berlin Radio Tower, was a student of Paul Wallot, designer of the Berlin Reichstag. The property was extensively refurbished in 2002 by Berliner Volksbank.

Marc Mogull, Benson Elliot Managing Partner, said:
“We stock-pick our investments for growth, but we need to be nimble enough to shift strategy when opportunity comes knocking. At the end of the day we’re performance driven, not AUM driven. This disposal will enable us to make an early distribution to investors, and to recycle the profits into other opportunities.”

ENDS

For further information:

Benson Elliot
Marc Mogull, Managing Partner
Matilda Lane
+44 (0) 20 7808 8900
Matilda.lane@bensonelliot.com

FTI Consulting
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000
Dido.laurimore@fticonsulting.com
Claire.turvey@fticonsulting.com

view more