CCPIII has sold the Dieterich Karree residential/retail complex in downtown Dusseldorf’s Pempelfort district to Bayerische Versorgungskammer (BVK), Germany’s largest public pension fund, for €70.5 million and a 5.2% initial yield. CCPII is a core-plus fund that’s advised by Tristan Capital Partners. The Dieterich Karee complex offers 18,300 sqm of residential space in 282 units. The property was taken over by creditors when its owner, the German investors Ignatz Bubis, passed away in 1999, but it then suffered from a lack of investment.
Ben Newman, MD of portfolio and asset management at Tristan Capital Partners says this complexity attracted his company. “On its purchase in mid-2011 with PAMERA as a co-investor we were confident that the German residential and retail markets were set for a strong run, as indeed has occurred, so we have comfortably exceeded our return target for the CCPIII Fund on this transaction.”
