BlueRock Group expands despite 2023’s challenging market environment

by   CIJ News iDesk III
2024-02-01   08:00
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BlueRock Group, a Zurich-based real estate investment boutique providing investment options for private and institutional investors, family offices and asset managers in Europe, completed transactions with a total volume of EUR 207 million in office and residential real estate in 2023. This included acquiring eight residential buildings in Berlin, with a total lettable area of 15,000 square metres providing 213 residential and 17 commercial units. Among disposals, eight buildings from the BR-NAS office property fund portfolio were sold. The BlueRock Group had a total of EUR 600 million of assets under management at the end of 2023.

Ronny Pifko, Managing Director of the BlueRock Group, explains: "Notwithstanding last year’s market environment, which was sometimes far from easy, the company succeeded in broadening its base. In the commercial property sector we are now active as an investor and asset manager for third parties throughout Germany. In Berlin, we are successfully focussing on the residential segment and have significantly strengthened our team accordingly. This enables us not only to increase our in-house capabilities for the challenging asset management business, but also to expand our range of services in the fields of technology and ESG for our clients."

Development
In Stromstrasse, in Berlin's Moabit district, construction of a new transverse building with 13 apartments and a total lettable area of 518 square metres continued. Lettings should commence from the middle of the 2nd quarter of this year. In Soldiner Strasse in the Gesundbrunnen district, construction of a side wing with nine apartments and a penthouse with a combined residential floor area of around 650 square metres began in 2023. Additionally, four penthouses, with a total residential floor area of around 1,450 square metres, are currently being built in other properties. Including existing and new buildings, the BlueRock Group's Berlin portfolio currently comprises 34 residential properties, with a total area of around 63,000 square metres.

Fund management
The remaining properties from the original 150 condominium apartments owned by the BlueRock Fund Cell H – Berlin Residential Growth were successfully sold in 2023. As a result, the fund, which was launched in 2015, is being liquidated.

Asset Management
The BlueRock Group has attracted a number of new asset management instructions, including the "Tempelhof Twins" at Komturstrasse 18-18a, Berlin. In partnership with an institutional investor, the company acquired this office property in 2019 and took over the asset management in 2023. Refinancing was carried out within a short space of time and a new structure around the management of the building was created. Dating from 1996, the office property in the Schöneberg-Tempelhof district provides some 22,250 square metres of lettable area, around 83% of which is occupied. Standing on a site of approximately. 9,000 square metres, the property boasts 267 parking spaces.

In Munich, the BlueRock Group was instructed to carry out the asset management of "Plutos". This office property, close to the Munich Exhibition Centre, is owned by a group of private investors. Completed in 1986, it provides a lettable area of 22,600 square metres. The associated site at Schatzbogen 50-62 / Am Moosfeld 26 has an area of around 23,000 square metres. The property, which includes around 260 parking spaces, has an occupancy rate of c. 82%. The first lettings and lease extensions have already been concluded.