CapitalBAY completes acquisitions for Deutsche Wohnen SE

Berlin, 19 December 2017 – With support from Berlin-based CapitalBAY GmbH (CapitalBAY) as transaction manager for small-ticket residential property acquisitions, Deutsche Wohnen SE has completed the purchase of several residential properties in the German cities of Dresden and Mannheim. The multi-family dwellings – in good residential locations, and including newly renovated as well as listed structures – were acquired in several transactions. The aggregate purchase price of the acquired properties is in the low double-digit millions euro range.

Since March 2017, CapitalBAY has been assisting Deutsche Wohnen SE in the transaction management of properties and smaller residential portfolios in Deutsche Wohnen’s core regions totalling some 15 million euros. “CapitalBAY helps us to identify existing properties with a stable cash flow and minimal renovation needs,” explains Falk Laloi, Managing Director of Deutsche Wohnen Corporate Real Estate GmbH and responsible for acquisitions and sales at Deutsche Wohnen Group. “CapitalBAY is thus unlocking new potential seller segments for us and perfectly supplements our core property acquisition strategy.”

In its transaction management activities, CapitalBAY relies on its own standardised and IT-based real estate acquisitions process. “We are proud to be able to support a major player such as Deutsche Wohnen with our experience and expertise,” says Ralph Ziegler, Managing Director of CB Transaction Management GmbH.

CapitalBAY acquires senior care home in Bad Soden-Salmünster, to be operated by CURATA

Berlin, 13 December 2017 – Capital Bay GmbH (CapitalBAY), the Berlin-based investment manager, has acquired Seniorenheim Am Kurpark, a senior residential care home in Bad Soden-Salmünster near Frankfurt, for an amount in the low double-digit millions. The facility was opened in 1999 and expanded in 2005 with the construction of a further building on the 12,500 sq.m. property. Seniorenheim Am Kurpark currently offers 206 beds over 7,500 sq.m. of floor space, with a further seven beds currently being added. The acquired property is in good condition and almost entirely rented out.

The facility will be operated by CURATA Care Holding GmbH.

“The market for senior residences and care homes continues to offer very attractive growth opportunities,” says George Salden, CEO von CapitalBAY. “We are planning to make further acquisitions within this asset class.”

Bad Soden-Salmünster is an attractive and desirable German spa town some 60 km east of Frankfurt, with a population of 13,000. Located directly on the A-66 motorway, and with good connections on a major rail line, the town combines convenient access to the nearby cities of Frankfurt and Fulda with the rugged natural beauty of the surrounding Spessart forest.

Capital Bay secures further residential portfolio: 300 units in B cities

Berlin, 23 October 2017 – The Berlin company Capital Bay GmbH (Capital Bay) has signed an agreement to acquire a further residential portfolio with properties in good central and peripheral city locations. The portfolio comprises around 300 residential and 20 commercial units, distributed across prosperous cities in Bavaria and Saxony with a focus on Dresden and Nuremberg. The total rental area amounts to approximately 20,000 m². The core properties have very low vacancy rates of less than 5%. “We are therefore continuing our investment strategy in high-growth B cities,” said Ralph Ziegler, Managing Partner at CB Transaction Management GmbH. “The excellent quality of the properties makes them an excellent fit for our CB Wohnimmobilien Germany special fund.” The properties are being sold by the WIDe Wertimmobilien Deutschland Group from Ebermannstadt. The purchase price is in the low eight figures.

Torsten Doyen, Managing Partner at CB Capital Management GmbH, added: “We are delighted to have received our first subscriptions to the special fund from insurance companies and pension funds.” The transfer of ownership, and the rights and liabilities of ownership, is planned for the end of the year.

Capital Bay’s legal consultant was the law firm Jung & Schleicher.

Capital Bay launches highly invested residential property fund

Berlin, 11 October 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) is launching an open-ended special AIF for residential property: The “CB Wohnimmobilien Deutschland” fund focusses on residential properties in the top 7 German metropolitan regions and in sustainably growing German cities with more than 100,000 inhabitants. The administrating investment company is HANSAINVEST Hanseatische Investment-GmbH.

Right at the start, the fund is investing around €260 million in almost 1,900 residential units in the fast-growing cities of Hanover, Dresden, Fürth, Erfurt, Lübeck, Kiel and Nuremberg. All of the properties are located near the city centre, are in the affordable rent category and generate direct cash flows. “We have thus already implemented our investment strategy and developed a broadly diversified residential property portfolio with stable distributions and returns and a core-plus risk profile,” explains Torsten Doyen, Managing Director of CB Capital Management GmbH.

The calculated rents in the fund are around 20% below the current market level and in the sale an average of two factors were deducted from the purchase factor, in contrast to standard market practice. “Our target IRR of 4.1% is therefore extremely valid and would also withstand market corrections,” says Doyen. “In the fast-growing cities in particular, there is not enough new residential construction to meet the demand and most of it is taking place in the upper rent and purchase price segment due to the high costs of development and construction. Demand for apartments with affordable rents will therefore significantly outstrip supply in the future, too.”

Capital Bay acquires retirement home in Erfurt

Berlin, 7 September 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) has acquired the Ambiente retirement home in Erfurt. The property, located in a desirable central location in Erfurt-Daberstedt, is also used as a hotel to a limited extent. The purchase price is in the mid eight figures.

Constructed in 1999, the complex offers around 200 nursing places and 60 hotel rooms. The retirement home has been successfully operated by the Victor’s Group for more than 15 years. “With the Ambiente, we are expanding our retirement home portfolio,” commented George Salden, CEO of Capital Bay. “The facility in Erfurt is excellently positioned on the market with a utilisation rate of almost 100 percent.”

The law firm Jung & Schleicher provided Capital Bay with legal advice in connection with the acquisition.

Care homes: Purchased by Capital Bay, operated by CURATA

Berlin, 10 July 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) has gained CURATA Pflegeeinrichtungen as the operator for a care home in Dresden. The building in the Friedrichstadt district of Dresden offers places for 75 residents in an area covering 2,600 square metres and is fully let. Capital Bay already acquired this property dating from 1900 last year.

George Salden, CEO of Capital Bay, comments: “The property in Dresden has a very good reputation. Given that we see good growth opportunities on the care property market, we will undoubtedly acquire further properties in this asset class and – if possible – enter into a strategic partnership with CURATA for the operation of these facilities.”

The property in Dresden has a very good city-centre location just one kilometre from the Zwinger palace. In 2011, the building was completely renovated specifically for use as a care facility.

Frankfurt: Capital Bay makes purchase in Niederrad

Berlin, 26 June 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) has acquired an office property of around 14,000 m² in total in Frankfurt Niederrad. The building dating from 1985 is part of the “vibrant office city” of Niederrad. The seller is a global investment manager for alternative investments. The purchase price is in the low eight figures.

Capital Bay sees good value appreciation opportunities for the property by a stronger commercial occupancy rate. “The building has a higher vacancy rate, but is in very good condition. Niederrad is also an excellent office location with a great potential for comeback,” says Ralph Ziegler, Managing Director of CB Transaction Management GmbH. “In the long term, however, we could also imagine a change of use to residential.”

The “vibrant office city” of Niederrad has for some years been evolving from purely an office location with around 25,000 workers into a mixed residential and office district. More than 1,000 residential units have now been built; up to 10,000 people are expected to live here at some point. The district has excellent public transport links: The centre of Frankfurt can be reached in 15 minutes, Frankfurt Airport in just 10 minutes. The A5 motorway is on the doorstep.
Legal advice was provided to Capital Bay by Jung & Schleicher.

Capital Bay enters into joint venture with Echterhoff Bau Group

Berlin, 14 June 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) and the Echterhoff Bau Group are cooperation partners: Echterhoff will act as a partner and service provider for the Construction and Development division of Capital Bay, handling several new construction and development projects for the Berlin-based property investment company.

“With Echterhoff, we are bringing a construction specialist with decades of expertise on board. Echterhoff will be able to give us excellent support with our often extensive project developments,” explains Karsten Stellmach, Managing Director of CB Construction & Development GmbH. The Echterhoff Bau Group will perform chiefly development and civil engineering work for Capital Bay as well as managing selected building construction projects. The family company headquartered in Westerkappeln has around 450 employees at six locations in Germany. “We look forward to applying our 150 years of expertise in this collaboration with a relatively young company like Capital Bay,” says Thomas Echterhoff, Managing Partner of the Echterhoff Bau Group.

Capital Bay has acquired development properties worth almost €500 million in recent months, and more properties are to follow.

Lübeck: Capital Bay acquires 226 residential units

Berlin, 9 June 2017 – The Berlin-based company Capital Bay GmbH (Capital Bay) has acquired 226 residential units in Lübeck with total rental space of just under 16,000 m² in a share deal. The portfolio includes six former barracks buildings that were converted into housing between 2012 and 2016, as well as a residential and commercial building in a high-street location and two other residential buildings in the Kücknitz district of Lübeck. The seller is a capital investment company based in a foreign EU country. The purchase price is a ten-figure amount in euros.

“The portfolio is fully let and has the same quality as new buildings thanks to the complete renovation of the barracks. The micro-location of the properties is highly sought-after. With its picturesque old town and its location by the Baltic Sea, the Hanseatic city of Lübeck is attracting growing numbers of residents. Demand for attractive housing is so high that the market is virtually full up and has hardly any vacancies,” says Ralph Ziegler, Managing Director of CB Transaction Management GmbH.

Legal advice was provided to Capital Bay by Jung & Schleicher Rechtsanwälte and to the seller by the consultancy Pestlin & Co. from Hamburg and the law firm Schröder Fischer.

Capital Bay: Gottfried Drescher to head retail property division

Berlin, 17 May 2017 – Gottfried Drescher is the new Managing Director of CB Cash & Carry Management GmbH. In this role, the 56-year-old will be responsible for the administration and development all retail properties at the Berlin-based full-service investment company.

Drescher is moving to the company from Metro Cash & Carry Deutschland, where he most recently managed a sales volume of EUR 1.3 billion and 2,800 employees as head of Sales. From 2010 to 2015, Drescher served as the manager of C+C Schaper GmbH, a wholly owned subsidiary of Metro Cash & Carry. Here he was responsible for projects including the integration of the 51 C+C Schaper stores into the portfolio of Metro Cash & Carry Deutschland.

“In Gottfried Drescher, we have gained a proven expert in the German retail market,” says George Salden, CEO of Capital Bay. “Whether it’s wholesale markets, cash-and-carry stores or supermarkets – Mr Drescher knows the industry like the back of his hand. With his extensive expertise, we will equip our retail portfolio for the future.”