Orion Capital Managers acquires mixed-use asset in Germany

European real estate private equity firm Orion Capital Managers has purchased a partially completed mixed-use property in Mannheim, Germany. 

Mannheim, Germany - Orion Capital Managers

The acquisition, made through a special vehicle, was from an insolvency administrator representing three lenders.
The development spans 32,600 m2 and is about 80% finished. It features 105 residential units and 11 commercial spaces (around 95% complete), a 325-room hotel, 130 serviced apartments, and a significant amount of office space.
Mannheim was chosen due to its status as a strong secondary German city with good transport links, a diverse economy, and stable demand from tenants. The property is ideally located next to Mannheim's main train station, in a desirable residential area and a key office market.
Orion seized this opportunity during a construction halt, allowing them to acquire the asset at a favourable price. They plan to use their development expertise to add value by completing and repositioning the project.
The previous owner, EyeMaxx, filed for insolvency in 2021, leading to a stop in construction work. Orion collaborated with local partner guys on the ground and Frankfurt Construction Management to finalise the deal.
Chris Fritz, partner at Orion, said: "This acquisition demonstrates Orion’s ability to identify and underwrite complex opportunities, and to execute effectively to create value. By leveraging our development expertise and hands-on approach, we are confident that we will be able to unlock the potential of this asset."
Rainer Schlereth, the founder and managing director of guys on the ground, commented: "Orion’s extensive experience and deep understanding of complex European real estate markets make them an ideal partner for this project. We look forward to applying our local expertise to support the team in unlocking the full potential of the asset and driving its successful repositioning."
Orion was advised by Clifford Chance, King & Spalding, Berkers & Cie, and Houlihan Lokey. Debt financing is being provided by BGO, who were advised by Clifford Chance. guys on the ground/Frankfurt Construction Management were advised by bhp Bögner Hensel & Partner.