DWS ac­quires prime res­id­en­tial as­set in Ber­lin’s City West dis­trict

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. This marks the inaugural investment for its European Real Estate Partners (EREP) value-add strategy, adding to DWS’s EUR 7bn of total European Living assets. With the successful sale of the property, the Optima-Aegidius Group — which holds extensive assets in Munich, Berlin, and Dresden — has brought renewed momentum to the exit market.

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

The existing property provides approximately 7,380 sqm of net lettable area across residential, retail, office and ancillary spaces and currently benefits from strong occupancy in the residential portion. A preliminary building permit (“Bauvorbescheid”) allows for the development of an additional c. 4,500 sqm, enabling the delivery of high-quality city centre living accommodation with market leading rental demand fundamentals.

In line with DWS’s disciplined investment approach, the asset offers both stable income and clear value add drivers, including strong rental prospects amid an acute shortage of new housing supply in Berlin.

The acquisition and the property densification will be further complemented by a comprehensive capital expenditure programme of the existing units, including upgrades and selective refurbishment works, executed in partnership with a Berlin-based developer with a strong track record in inner city projects.

Ronen Ribak, Head of Value-Add, Real Estate Europe at DWS, said: “This acquisition exemplifies the type of asset that EREP targets and aligns with our conviction on European city centre living. The ability to upgrade a centrally located property and undertake a highly accretive development in one of Berlin’s strongest micro locations makes this a highly compelling first investment for the Strategy, and a strong benchmark for the additional investments we are already working on as we establish highly attractive, carefully selected Living focused assets for the Strategy.”

Carol Choy, Portfolio Manager for European Real Estate Partners (EREP) added: “Our platform allows us to combine local development expertise with institutional investment discipline which will enable us to reposition and unlock the potential of existing buildings in key markets in Europe in a way that enhances sustainability while creating a highly desirable Living product. This project perfectly reflects our ability to execute on our strategy of identifying opportunities where active asset management delivers superior returns for our investors.”

Dr. Ulf D. Laub and Dr. Jens Laub, Executive Board Members of the Optima-Aegidius Group: “The prime location and an appropriate purchase price, combined with flexibility in development, enable us to preserve the existing structure while creating something new.”