Round Hill Capital's European Multifamily Fund Completes German acquisition of 1,000 unit portfolio
Round Hill Capital, a leading global real estate investment, development and asset management firm, announces today that its European Residential Income Fund II (ERIF II) has completed a deal to acquire a 1,000 unit residential portfolio in East Germany from a subsidiary of Orlando Real Berlin GmbH, Berlin.18 February 2021
Round Hill Capital's European Multifamily Fund Completes German Acquisition of 1,000 Unit Portfolio
London 18 February 2021 – Round Hill Capital, a leading global real estate investment, development and asset management firm, announces today that its European Residential Income Fund II (ERIF II) has completed a deal to acquire a 1,000 unit residential portfolio in East Germany from a subsidiary of Orlando Real Berlin GmbH, Berlin.
Spread across 13 clusters in Halle and Magdeburg, the deal includes 982 residential units spanning 52,819 sqm and 4 commercial units. The properties demonstrate high occupancy rates, helping to drive stable returns based on long-term rental income for the investors of ERIF II.
Round Hill Capital will unlock further value by leveraging the expertise of its on-the-ground German team, which benefits from established in-house investment, asset management and property management capabilities. The company plans to use innovative technology to better engage with tenants and complete the refurbishment strategy to enhance returns at the properties.
The deal is the fourth transaction for the ERIF II closed-ended, Core / Core Plus commingled investment fund, after it completed three multifamily housing deals in the Netherlands in December of 2020. Managed by Round Hill Capital, the fund invests in multifamily housing assets in Europe offering attractive long-term yield, focusing on comparatively stable residential markets including the Netherlands, Germany and the Nordics.
ERIF II is targeting multifamily housing assets with mass market affordability in strong micro-locations that exhibit positive demographic and macroeconomic trends, persisting supply/demand imbalances and strong transport links.
Michael Bickford, founder and CEO of Round Hill Capital commented:
“The first transactions for the ERIF II fund in Germany and the Netherlands, underline the strength of European multifamily investment activity and Round Hill Capital’s ability to identify and complete transactions with the benefit of our long-standing presence and track record in these markets.
The current economic conditions have tested many asset classes, yet accommodation continues to provide consistently stable income streams at a time when yield is under intense pressure and this is driving investment demand from international institutional investors. We look forward to continuing to invest further capital in the near future.”
Dr. Marcus Eilers, Managing Director – Germany, Round Hill Capital commented:
“We are delighted that one of the first acquisitions for ERIF II was executed in Germany, where Round Hill Capital have been active for many years and have built a strong track record.
Magdeburg and Halle are extremely attractive locations, Magdeburg being the state capital of Saxony-Anhalt with strong transport links to other major German cities such as Berlin and Leipzig and Halle is one of the top five largest cities in East Germany. We are drawn to these cities which demonstrate strong demographic trends, low unemployment and consistent economic growth.”
Siegmar Engel, Managing Director speaking on behalf of the seller commented:
“We are pleased to have identified a local, reliable purchaser who can continue our work and optimize the original strategy with their professional team.“
Legal advice on the transaction was provided by Mittelstein Rechtsanwälte. Warth & Klein Grant Thornton AG assisted in tax and financial due diligence for Round Hill Capital. Orlando Group were advised by BNP Paribas.