Optima sells Kürfürsteneck to DWS

The DWS Group, a leading asset manager in Europe with global reach, has acquired the residential property at Ansbacher Straße 8-14 in the heart of Berlin's sought-after City West district from the Optima-Aegidius group of companies. This marks its first investment under its European Real Estate Partners (EREP) value-add strategy, adding to its existing European residential portfolio with a total value of €7 billion. The successful sale of the residential property has brought some movement back into the exit market for the Optima-Aegidius group of companies, which has extensive holdings in Munich, Berlin, and Dresden.

The property comprises a residential building with 148 units and offers considerable development and repositioning potential thanks to a preliminary building permit for two additional residential buildings. The central location and the prospect of additional residential building rights made the sale possible.

The existing property has around 7,380 square meters of leasable space for residential, retail, office, and ancillary use and currently has high occupancy in the residential segment. The preliminary building permit allows for the development of an additional 4,500 square meters, creating the conditions for high-quality inner-city living space with high rental demand.

In line with DWS's disciplined investment approach, the property offers both stable income and clear potential for value appreciation with good rental prospects against the backdrop of an acute shortage of new residential space in Berlin.

The acquisition and planned redensification of the property will be complemented by a comprehensive investment program for the existing units. The project will be implemented in partnership with a Berlin-based project developer with a proven track record in inner-city projects.

Ronen Ribak, Head of Value-Add, Real Estate Europe at DWS: "This acquisition is exemplary of the type of assets EREP targets and is consistent with our belief in inner-city living in Europe. The opportunity to enhance a centrally located property and implement value-adding development in one of Berlin's strongest micro-locations makes this a highly attractive first investment for the strategy. At the same time, the project sets the benchmark for further investments we are already working on to build a carefully selected, highly attractive residential portfolio for the strategy."

Carol Choy, portfolio manager of the European Real Estate Partners (EREP) fund: "Our platform enables us to combine local development expertise with institutional investment discipline. This allows us to reposition existing buildings in key European markets and leverage their potential in a way that promotes sustainability while creating a highly desirable residential product. This project demonstrates how we implement our strategy and identify opportunities where we can generate above-average returns for our investors through active asset management."

Dr. Ulf D. Laub and Dr. Jens Laub, members of the Executive Board of the Optima-Aegidius Group: “The prime location and the right purchase price with scope for development allow us to preserve the existing portfolio and create something new.”