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.
For further information:
Philipp Braschel, Partner
+44 (0) 20 7808 8900
Dido Laurimore / Claire Turvey
+44 (0) 20 3727 1000