Benson Elliot, the UK-based private equity real estate fund manager, has acquired a 18,600 sqm grocery-anchored retail asset from RDI REIT for €65.5 m. Located in the Steglitz-Zehlendorf borough in the south-west of Berlin, it is the first investment undertaken by Benson Elliot since the onset of Covid.
Set in a highly visible and well-connected position on Schloßstrasse, one of the capital’s prime high streets and most affluent areas, the centre benefits from direct access to the Walther-Schreiber-Platz U-Bahn station, and sits adjacent to one of Berlin’s busiest bus terminals. The property is arranged over the basement (U-Bahn egress), ground and first floors, with a 350-space car park located on two further upper levels. The centre is 97% occupied, with a mix of national and international retailers and a convenience / value offering that has proven to be highly resilient to e-commerce penetration. Tenants include Germany’s second largest supermarket chain, REWE, leading drugstore retailer dm-drogerie markt, as well as a two storey Primark.
Benson Elliot intends to reposition the centre by consolidating its grocery and convenience offering, optimising tenant composition, reconfiguring space and re-gearing lease terms. As one of the only retail formats to remain open during the Covid lockdown, grocery-anchored assets have maintained their appeal to institutional investors seeking secure income streams.
The investment marks a continuation of Benson Elliot’s German convenience retail strategy, following the acquisition of a portfolio of three regionally dominant centres in May 2019. The acquisition takes the firm’s German convenience retail holdings to c. €250 m.
Joseph De Leo, Senior Partner at Benson Elliot, said: “We continue to see long term value in market dominant, needs-driven retail formats. While the structural trends underpinning the retail sector have no doubt accelerated over the past few months as a result of the enforced lockdown, the benefits of grocery-anchored centres, which remained open because of the community services they provide, were also accentuated. This property is in a high footfall location and we believe significant value can be created by refining its offer. Moreover, in a low interest rate environment we’re confident that investors will continue to favour the stable cash flows offered by grocery-anchored formats in fast-growing, supply-constrained locales, let on sustainable rents to strong covenants.”
Modulus Real Estate, the Hamburg investor and asset manager, has taken a minority stake in the transaction. They will implement day-to-day project and asset management at the property.
Benson Elliot, the UK-based private equity real estate fund manager, acting on behalf of its pan-European fund, Benson Elliot Real Estate Partners V L.P. has acquired Marynarska Business Park (MBP), an award-winning office complex in Warsaw, from a fund managed by Heitman Real Estate. The price paid was c. €65 million.
MBP provides 46,000 sqm of office spce across four buildings, together with 1,400 car parking spaces. The site was developed by Ghelamco in 2008, with the project earning recognition that year as CEE Real Estate Office Development of the Year and Best Overall Development in Poland.
The business park is prominently situated in Mokotów, Warsaw’s largest office sub-market outside the city centre. Mokotów lies between the city centre and Warsaw’s Fryderyk Chopin Airport, providing quick and easy access to both by train or car. The area is set to gain further from major infrastructure works currently underway.
Benson Elliot is planning a targeted refurbishment of the property, encompassing an upgrade of communal areas and an expansion of occupier-focused amenities (including MBP’s food and beverage offering). In addition, Benson Elliot plans to re-design the park’s external areas to improve the volume of green space, providing the park’s office users with a significantly enhanced work environment.
Joseph DeLeo, Benson Elliot Senior Partner, said: “Marynarska Business Park represents the second office investment in Warsaw for Benson Elliot in the last 12 months. Warsaw offers a compelling office investment story today, with the market benefitting from rising take-up, falling vacancies and strong investor interest. Tenant demand is being driven by international and domestic companies seeking access to a young, well-educated, multilingual work force. The acquisition of MBP fits in well with our strategy of acquiring quality office assets in strong locations across Poland. We look forward to building on the park’s longstanding popularity, providing tenants with contemporary space in a healthy environment.”
Benson Elliot was advised on the transaction by Dentons, BNP Paribas and Cushman & Wakefield, and has engaged Syrena Real Estate as local operating partner.
Benson Elliot’s Director of Investor Relations, Laura Coleman, shortlisted in Bisnow’s Women Leading Real Estate in 2019, for her instrumental role in the fundraising for Benson Elliot Real Estate Partners V
A joint-venture led by UK-based private equity real estate fund manager Benson Elliot Real Estate Partners V, LP (“Benson Elliot”) and Schroder Real Estate Hotels (“SREH”, formerly Algonquin) has acquired three hotels (the “Portfolio”) totalling 1,183 rooms in Disneyland, Paris. The themed hotels, which are adjacent to one another, were acquired off-market in two separate transactions for a total investment of circa €240 million.
Dream Castle and Magic Circus, both four star hotels, were purchased from Austrian real estate developers Warimpex / UBM, while Explorers was purchased from a JV managed by SREH. The investment is structured as a 50/50 JV between Benson Elliot and a consortium of private investors advised by SREH.
Disneyland Paris is Walt Disney’s only European theme park and Europe’s most popular tourist destination. The Disney market has experienced almost uninterrupted growth for the last 15 years, set to be driven further by Disney’s €2 billion expansion plan, which will be rolled out from 2021 and is the most ambitious project undertaken since the park opened in 1992.
Developed between 2003 and 2007, the Portfolio has a profitable trading profile and generates strong cash flow. Whilst the assets have benefitted from substantial investment, significant opportunities remain for the JV to create further value through the implementation of targeted asset management initiatives.
The JV has engaged SREH as the Portfolio’s manager.
Marc-Olivier Assouline, Benson Elliot Principal, said: “The Portfolio represents a collection of high-quality, cash-flowing assets being acquired at a substantial discount to replacement cost. The hotels present opportunities to optimise value and grow income through targeted refurbishment programmes. Benson Elliot has built a strong track record in the hotel sector, with over €1 bn in hotel investments and dispositions in just the last five years. This transaction marks another partnership with the former Algonquin team, with whom we have worked successfully in the past.”
Benson Elliot, the UK-based private equity real estate manager, acting on behalf of its pan-European fund Benson Elliot Real Estate Partners IV (“BEREP IV” or the “Fund”), has sold its 74.9% stake in GWB Elstertal Geraer Wohnungsbaugesellschaft mbH (“GWB” or the “Company”) to an affiliate of Thueringer Aufbaubank, a public entity controlled by the German State of Thuringia. The consideration for the transaction implies an enterprise value for the Company of €175 million.
Benson Elliot acquired the majority stake of GWB in August 2016. At the time, the communal housing company owned and managed a portfolio of c. 6,700 residential units, encompassing 402,000 sqm across 330 assets, in Gera, the third-largest city in the Federal State of Thuringia in central Germany.
Since acquisition, under Benson Elliot’s oversight GWB’s portfolio has been improved significantly, through the introduction of best-in-class leasing and operational management processes to refurbish and lease the core residential properties. Non-core and obsolete holdings were disposed of, and a comprehensive portfolio refinancing was completed with Landesbank Baden-Wurtemburg.
Joseph DeLeo, Benson Elliot Senior Partner, said: “The entire team has worked closely with the City of Gera and the senior lender to define and execute the business plan effectively. We’re confident that GWB’s new owners will continue the positive work we’ve started, further improving this portfolio responsibly for the local community.”
Benson Elliot was advised by Greenberg Traurig and VictoriaPartners. The Purchaser received legal advice from McDermott Will & Emery.
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 L.P. (“BEREP IV” or the “Fund”), has acquired an office building in central Warsaw from an institutional fund.
Built in 1995 and refurbished in 2012, the property comprises c. 14,100 sqm of modern office space, with ground floor retail and 96 car parking spaces. The building is prominently situated in the popular City Centre West sub-market, a dynamic business district seeing rising rents due to its central location, excellent transport links and local amenities.
Benson Elliot is planning a transformative refurbishment and subsequent repositioning of the building. The value-add programme will see an upgrade to the existing space and delivery of state-of-the-art amenities including co-working areas, an improved F&B offering and green spaces. When completed, the building’s workplace and tenant appeal is expected to be markedly enhanced, offering contemporary space in an increasingly popular area of central Warsaw.
Joseph DeLeo, Senior Partner at Benson Elliot, said: “We’ve been engaged in Poland’s regional office markets for several years, but see a compelling investment story in Warsaw now too. The Warsaw office market is seeing rising take-up, falling vacancies and strong investor interest, with international companies moving to the capital to benefit from its young, well-educated, English-speaking work force. We’re well positioned to capitalise on the opportunity and look forward to delivering an exciting new urban workplace in this increasingly sought-after locale.”
Benson Elliot was advised by Dentons and Reesco and has engaged Syrena Real Estate as local operating partner.
The acquisition represents the fifth transaction in the firm’s Polish regional office strategy.
Diamentum is a 9,300 sqm, grade A office building, prominently situated in Wroclaw’s Western office district. The building, delivered earlier this year, is arranged over eight floors and provides surface and underground parking for 100 cars. Diamentum has been awarded a BREEAM – Very Good environmental certification.
Benson Elliot’s Polish regional portfolio now totals c. 55,000 sqm of grade A office accommodation across Poland’s key regional markets: Kraków, Gdańsk, Łódź, Poznań and Wroclaw. The assets are well-let to international and major domestic tenants, recently-developed or re-developed to a high specification, and situated in central locations in their respective markets.
Joseph DeLeo, Benson Elliot Senior Partner, said:
“The acquisition of Diamentum fits in well with our strategy of acquiring quality office assets in prime locations across Poland’s major regional markets. This is an exceptional building, nearly fully let, with a blue-chip tenant roster.”
Daniel Draga, Member of the Management Board, CFO at Cavatina Holding S.A., said:
“Diamentum, like other commercial buildings in the portfolio of Cavatina Holding S.A., was designed by our internal team of architects. This year the building also received the TOPBuilder award. We strongly believe that Diamentum raises the bar not only for the level of architectural design in regional cities, but also for the quality of office buildings developed throughout Poland. In Benson Elliot’s regional office portfolio, it will shine like a real diamond.”
Sharow Capital will manage the property, alongside the other properties in Benson Elliot’s Polish regional portfolio. Greenberg Traurig and CmT acted as advisers on the acquisition. Cavatina was advised by Dentons and CBRE.