MPC Capital acquires residential property ensemble in Berlin for ESG residential real estate fund
28 Sep 2023
- Acquisition of the sixth property for Article 8 fund
- Investment strategy proves successful in challenging market environment
- Outlook: Residential real estate remains highly attractive
Hamburg, September 28, 2023 - Asset and investment manager MPC Capital achieves another important milestone for its residential real estate fund and expands its leading role in the market for ESG real estate investments. The Article 8 fund has acquired a new building complex in Berlin-Pankow that has successfully passed the ESG scoring model developed by MPC Capital for the fund.
113 residential units with a total of 7,000 sqm of living space
The property comprises two multi-family houses with a total of around 7,000 sqm of living space spread over 113 residential units. In addition, the property, completed and fully rented in mid-2022, includes 39 underground parking spaces and one commercial unit. The seller is Covivio Immobilien GmbH, Berlin.
Christoph J. Thumm, Managing Director Real Estate at MPC Capital: "The property in Berlin is the perfect new addition to our ESG fund portfolio - thanks to its high energy efficiency and central yet green location. The property is already completed and fully rented, eliminating any construction and completion risks and immediately generating ongoing income. We thank our institutional partners for their trust in our team during the acquisition and are thrilled to successfully implement our proven investment strategy, even in volatile market phases. We aim to further expand our portfolio and are actively seeking attractive investment opportunities."
Fund strategy focuses on ESG-compliant residential real estate
The ESG residential real estate fund was launched at the end of 2020 in collaboration with Universal Investment as an open-end special AIF with fixed investment conditions and was among the first Article 8 funds on the market for residential real estate.
The selection of locations and properties is based on the MPC scoring model, taking into account socio-economic framework data, energy standards, and location qualities associated with mobility concepts. The focus is particularly on the energy efficiency of buildings and technical systems. Due to the strict ecological requirements, the fund mainly focuses on new buildings.
In terms of location, around 45 investment sites in Germany are suitable. One focus is on so-called swarm cities, which benefit from an above-average influx of young and well-educated employees. With the recent acquisition, the fund's portfolio now includes six properties located in the metropolitan regions of Frankfurt, Hamburg, Berlin, and Münster.
Strong demand meets challenging market conditions
Christoph J. Thumm is convinced that the asset class of residential real estate remains highly attractive: "The demand for additional housing is immense and faces a currently challenging market environment. At the same time, the requirements for building efficiency and ecology continue to increase. This inevitably leads to a shortage of supply and demand surplus, which will have a positive impact on the achievable returns. With our team, our network, our deep market penetration, and our investment strategy focused on carefully selected residential real estate, we are optimally positioned to deliver interesting investment ideas to our investors under the changed framework conditions and to further expand our portfolio."
MPC Capital has been active as an asset and investment manager in the real estate sector for over 25 years. Since then, the Hamburg-based company has structured and financed more than 400 commercial and residential real estate investments in nine countries. With the ESG fund, MPC Capital has expanded its role as an investment manager of tangible assets and green assets.
Further information on the property and the transaction:
The property is located in the Pankow district, within walking distance of the popular Prenzlauer Berg district. The location, vis-à-vis a large green area, offers a diverse mix of residential, retail, commercial, and health properties that contribute to excellent local supply. Excellent public transport connections are also guaranteed.
The acquisition was carried out with legal and tax advice from Taylor Wessing and technical advice from BMP Baumanagement. The transaction was brokered and accompanied by HPBA, Berlin.
About MPC Capital AG (www.mpc-capital.com)
MPC Capital is a global asset and investment manager for tangible assets in the real estate, renewables, and shipping sectors. The range of services includes the selection, initiation, development, and structuring of capital investments through active management to disposal. With around 200 employees and over 25 years of experience, MPC Capital offers institutional investors access to investments in selected markets with attractive growth and return opportunities. As a responsible and family-owned company listed on the stock exchange since 2000, MPC Capital contributes to covering the financing needs to achieve global climate goals.
About Universal-Investment (www.universal-investment.com)The Universal Investment Group is one of the leading European fund service platforms and Super ManCos with around 979 billion euros of administered assets, around 2,000 fund and investment mandates, and more than 1,700 employees at locations in Frankfurt am Main, Luxembourg, Dublin, London, Paris, Stockholm, Hamburg, and Krakow. Founded in 1968, the company offers independent platform initiators and institutional investors structuring and administration solutions as well as risk management for securities, real estate, and alternative investments. The company is a signatory to the UN Principles of Responsible Investment and a member of the Forum for Sustainable Investment e. V. (as of August 2023).
MPC Capital AG
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