DWS acquires Berlin resi asset for European value-add strategy

European asset manager DWS Group has purchased a prime residential property at Ansbacher Straße 8–14 in Berlin's desirable City West district from Optima-Aegidius Group. 

Kurfuersteneck, Ansbacher Straße 8–14, Berlin - Optima

This acquisition is the first for DWS's European Real Estate Partners (EREP) value-add strategy, expanding their total European Living assets to €7 billion.
The property, which includes 148 existing residential units and approximately 7,380 m2 of net lettable area, presents significant development opportunities. A preliminary building permit allows for the construction of two additional residential buildings, adding around 4,500 m2 of new living space. This expansion aims to capitalise on Berlin's high demand for city-centre housing and strong rental prospects due to a shortage of new supply.
DWS plans a comprehensive capital expenditure program to upgrade and refurbish existing units, partnering with a local Berlin developer experienced in inner-city projects. This investment aligns with DWS's strategy to acquire assets offering both stable income and clear potential for increased value.
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), commented: “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.”
Ulf D. Laub and Jens Laub, Executive Board members of the Optima-Aegidius Group, added: “The prime location and an appropriate purchase price, combined with flexibility in development, enable us to preserve the existing structure while creating something new.”