28.02.22: Lakeward acquires portfolio property in Berlin Kreuzberg for ‘European Opportunities I’ fund

Lakeward has acquired the first property for the fund “LAKEWARD Real Estate Fund – European Opportunities I” launched in 2021 in an off-market transaction. The property acquired in an off-market-transaction is a 4400 m² mixed-use existing property in the Berlin district of Friedrichshain-Kreuzberg. The parties have agreed not to disclose the purchase price.

The acquired property is located on Mittenwalder Strasse and offers mixed use (residential and commercial) with leased areas and free development areas. It is planned to generally maintain the residential areas (approx. 2,234 m²), which are subject to the social preservation area. In the commercial part of the property, comprehensive renovations as well as reconstruction works are to be carried out. This affects the rear building, which is to be rented out as an office or co-working space. An event space will be created in the basement, which can be rented. The property further includes a retail space in the front part of the building. Parking spaces in the second courtyard and a traditional restaurant will remain. The structure of the building, with separate building sections, will ensure good mixed use and thus high usability of the property.

Mittenwalder Strasse is a quiet side street that runs from Blücherstrasse in a southerly direction and ends at the popular Marheinekeplatz. In the immediate neighborhood is the so-called “Bergmann-Kiez” with its numerous cafes and restaurants. Shopping facilities for daily needs are sufficiently available. The transport connection is well ensured by car as well as by public transport. The subway stations “Mehringdamm” and “Gneisenaustrasse” as well as various bus lines are in the immediate vicinity.

The fund to which the existing property will be assigned was launched in August 2021 and focuses on European commercial and residential properties.”The acquired property is ideally suited for the initial portfolio of the new real estate fund, as it offers attractive cash flow from the outset and significant upside potential through repositioning,” said Simon Koenig, founder, CEO and investor of Lakeward.

Commenting on the future and strategic direction of the fund, Simon Koenig says: “We continue to register high demand from our investors for opportunistic portfolio and development properties. Through our networks, we have access to mid-sized and larger portfolio and development projects in Germany’s central metropolitan areas. We have a filled pipeline and several due diligence processes are underway.”

Lakeward was supported in the process by KPMG, SMV Bauprojektsteuerung, Berlin, Dechert LLP, Luxembourg and GSK Stockmann, Berlin and PMG.