OREANDA-NEWS.    Prudential Real Estate Investors and Kauri CAB Management GmbH today announced the successful sale of a portfolio of 25 residential ‘Altbau’ buildings located within the S-Bahn ring of Berlin for EUR 78.6 million, or about USD 105 million. PREI® is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE:PRU).

The portfolio, with buildings constructed between 1886 and 1913, with more than 538,000 square feet available to be leased in the districts of Neukцlln, Kreuzberg, Schцneberg, Wedding, Tiergarten and Prenzlauer Berg. The transaction comprised the remaining assets acquired through a joint venture that PREI formed in August 2011 with Kauri CAB to invest in residential apartment blocks in Berlin. PREI, which operates as Pramerica Real Estate Investors in Germany, is acting on behalf of institutional investors.

Since 2011, the joint venture amassed 953 apartments, with Kauri CAB sourcing the acquisitions. Kauri CAB also oversaw the day-to-day property management, rental negotiations and refurbishment.

Sebastiano Ferrante, PREI’s head of Germany said, “The sale represents an excellent outcome for PREI and our partner. Most important, this sale confirms the successful track record of European value-added transactions we have made on behalf of our clients for the last 15 years. We intend to leverage this experience to capitalize on future investment opportunities in the German residential sector.”

Hagen Kahmann Genaral Manager of Kauri CAB Management added “We are pleased how this transaction resulted in a win for us in Berlin’s sizable market with a strong rent culture.”

Real estate advisor Angermann and European law firm Beiten Burkhardt acted for the joint venture in the sale.

Kauri CAB Management GmbH, based in Berlin, was formed in 2008. The company provides in-house a full suite of services within the German residential real estate sector; including: deal sourcing, acquisition, debt financing and structuring, asset management, property management, rental optimization and architectural and construction services. The principal has nearly 20 years of experience investing into real estate in Germany, much of that specifically into residential properties in Berlin. The company currently has 18 employees and manages approximately EUR 80mn of predominately residential assets.