Prime Capital AG has completed a senior secured refinancing of EUR 20 million for a residential property portfolio in Berlin. This financing was provided via two credit funds managed by Prime Capital and concerns an existing portfolio owned by the shareholders of the Ventis Group. The portfolio comprises residential properties in Berlin-Charlottenburg as well as serviced apartments in Berlin-Wedding, whose usage concepts generate stable operational cash flows in the respective submarkets.
The financing solution provided by Prime Capital is comprehensive and specifically tailored to the portfolio. It consolidates previous financings into a uniform structure, which encompasses a total of more than 60 individual units. This transaction is part of Prime Capital's established real estate debt business, whose investment approach is geared towards customised financing solutions for professional real estate investors and towards senior secured investments with resilient cash flows.
Strategic Importance for the Parties Involved
For the Ventis Group's ownership side, this refinancing represents an essential step within their long-term financing strategy. The new structure therefore creates planning certainty and serves as a basis for future cooperation with Prime Capital. The Ventis Group is primarily active in project development; however, the refinanced residential portfolio is held by the family office of its shareholders.
Mr Stefan Futschik, Head of Private Debt at Prime Capital, stated that the financing of the Berlin residential portfolio represents an attractive addition to the real estate debt business. He emphasised that the combination of established residential locations, diversified usage concepts and sustainable cash flows offers a compelling risk-return profile. The transaction also marks the starting point for a long-term collaboration with the Ventis Group, which Prime Capital intends to expand to further projects in the future. Mr Franz Josef Marxen, CFO of the Ventis Group, confirmed that a long-term oriented institutional financing partner has been secured in Prime Capital, who understands both the quality of the portfolio and the long-term strategic direction and requirements of the Ventis Group. He added that the new financing provides planning certainty and flexibility for future projects.
Role of Capital 27 as Debt Advisor
Capital 27 GmbH acted as the exclusive debt advisor for the family office of the Ventis shareholders throughout the entire financing process. Advisory services included structuring and positioning the transaction, identifying and selecting suitable institutional financing partners, and negotiating the commercial terms until the successful closing of the financing. Dr Daniel Schmidt, CEO of Capital 27, noted that the transaction demonstrates the continued strong availability of institutional capital for high-quality residential property portfolios with resilient cash flows. He highlighted that it was crucial to synchronise the requirements of the ownership side with the investment approach of a long-term oriented financing partner to implement a tailored solution.
This transaction underscores the increasing significance of alternative institutional lenders in the European real estate financing market. Such financing solutions offer private and institutional property owners a long-term alternative to traditional bank financing, tailored to the respective assets.
