Investors and developers home in on eastern Germany
The popularity of German real estate is rising, with capital flowing in from all directions. Foreign investors from the Middle East, in particular, are finding their way to Germany and domestic investment is as strong as ever.
In the past few months, several family offices from Israel, advised by Berlin-based law firm Bottermann Khorrami LLP, have been establishing a residential portfolio in eastern Germany. The portfolio now includes six residential and office buildings in Leipzig and Halle that were purchased as part of a club deal, and eight other residential properties in eastern Germany are being reviewed.
The properties are all in need of full renovation and are mainly vacant. The total cost of the portfolio, including the cost of renovation, is around €23.5 million. The investment project, financed exclusively by equity capital, was spearheaded by an Israeli investor and developer who has been active in Berlin for nearly 10 years.
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