08.08.2011 - Ärztekammer Steiermark (Medical Association of Styria) and Kronberg International acquire large portfolio of properties in Berlin

The Residenz Berolina GmbH & Co.KG acquires a portfolio of 977 residential and commercial properties in Berlin from a Danish family holding. Thus it is the first time that the joint venture between Ärztekammer Steiermark and Kronberg International S.A. becomes active in Germany.

With this transaction 907 residential and 70 commercial units located in the Berlin boroughs of Berlin Mitte, Prenzlauer Berg and Friedrichshain are passed on to the ownership of the Graz-based joint venture Residenz Berolina GmbH & Co.KG. The real estate portfolio includes 72 Wilhelminian-style buildings. All the objects with a total floor space of some 70,000 sqm have been core redeveloped. Sellers are a Danish family holding. The parties have agreed to keep the purchase price confidential.

Residenz Berolina GmbH & Co.KG is a joint venture of the Medical Association of Styria (Ärztekammer Steiermark) and Kronberg International set up to establish a sustainable property portfolio with stable returns in Germany. With its welfare funds the Medical Association of Styria administers the pension funds of their members. It is a long-term investor and a public corporation controlled by the Austrian General Accounting Office. Mr Werner Schönfelder, financial director of the Medical Association, is pleased with the first joint transaction: “The development after the financial crisis, the default of Greece, Portugal and Ireland and the corresponding rating downgrade for government securities, the situation in real estate prices in Austria, which do not allow for a reasonable return, along with a not unfounded fear of inflation have prompted the Medical Association to strengthen its real estate portfolio in Germany. Kronberg International has proved to be a competent partner.”

Kronberg International has acted as the leader of the acquisition process and has also invested its own capital. Further to the purchase processing Kronberg will also take care of the asset management of the portfolio. The Kronberg Group has been active on the German real estate market since 1990 and has made their expedient contribution to various joint ventures. Mr Martin Hellweger, CEO of Kronberg Group, defines their strategy as follows: “Our objective was a sustainable and long-term management of the acquired real estate portfolios aimed at value retention and stable returns for invested means. We are therefore planning further acquisitions in Berlin and other major German cities.” The very complex transaction was accompanied by the Olswang law firm as far as contract of purchase and Legal Due Diligence were concerned as well as by the law firm von Trott zu Solz Lammek which was involved also in the negotiations with the Senate, the Investitionsbank Berlin and various regional administrations since the portfolio is predominantly made up by state-aided objects. KPMG provided for fiscal consulting and Commercial Due Diligence. The transaction was financed by the SEB Bank.