Funds advised by real estate private equity firm Coros have provided a 21.5M€ capital solution to Primus Immobilien AG’s project Phoenix in Berlin. The funds will recapitalize the existing capital structure and further cover the final stages of the refurbishment of the 76-unit prime residential project, with anticipated completion date set for Q2 2024.
The project is already in an advanced, hence de-risked stage with 100% cost security and significant pre-sales. With further construction progress the MaBV tranches can be accessed to secure the refinancing of the provided capital. Consequently, the exposure remains limited to a fraction of the residual sales volume.
Coros has been closely monitoring Berlin’s residential market for the past months to identify opportunities across the capital stack. As banks pull back amid uncertain capital market conditions and financing from traditional sources is more difficult to obtain, access to capital is a clear issue for the real estate industry this year. Meanwhile, the residential market with competing push-pull forces of supply and demand is providing structural tailwinds.
“This strategic expansion into adjacent hybrid capital strategies perfectly aligns with Coros’ existing capabilities in real estate equity. Our capital expertise coupled with the in-depth commercial and technical understanding of real estate assets within our vertically integrated teams allows for a meticulous assessment of underlying asset risks.” says Philipp Horsthemke, Managing Partner at Coros.
“In addition to the dislocation and distress observed in real estate equity, we currently see relative value in the hybrid capital and credit space. This project exemplifies the corresponding opportunity set to provide capital for good quality project in sectors and markets with strong underlying fundamentals. With our ready access to discretionary capital north of 100M€, deep expertise and entrepreneurial approach we are well positioned to be a true partner in crafting bespoke capital solutions” adds Matthias Mittermeier, Managing Partner at Coros.