Tikehau Capital, a globally active asset manager, and Dunman Capital Partners, a real estate investment and asset manager with a presence in Frankfurt and Berlin, have acquired a property in Berlin-Charlottenburg. The acquired property, a vacant hotel at Wielandstraße 8, is to be completely demolished. A modern new build is planned in its place, which will comprise approximately 250 serviced apartment units across a total area of around 7,300 square metres.
The project aims to establish a contemporary offering for urban and flexible living. A key focus of the project is to increase energy efficiency and implement ambitious sustainability standards. The location in one of Berlin's most sought-after districts, coupled with positive demographic developments, indicates robust demand for the forthcoming offering. Upon completion, the property is intended for both long-term stays and traditional hotel operations.
Strategic Alignment and Collaboration
The investment is being made as part of Tikehau Capital's pan-European value-add real estate strategy, which is classified as an Article 9 strategy under SFDR and firmly integrates ESG criteria into its investment approach. This transaction marks the seventh fund transaction in Germany for Tikehau Capital. The project builds on the existing cooperation with Dunman Capital Partners. The two companies have already acquired a property on Querstraße in Frankfurt am Main, which is also to be converted into serviced apartments and for which planning permission has been granted.
For the future operation of the Berlin property, Tikehau Capital and Dunman Capital Partners are in discussions with potential operators. The selection of an operating concept will take into account the needs of business travellers as well as long-stay guests, and must also align with the ESG objectives of the overarching strategy.
Steffen Meinshausen, Head of Real Estate Germany at Tikehau Capital, emphasised the significance of this transaction as a further milestone for the value-add real estate strategy and the expansion of the German real estate portfolio. He explained that the redevelopment of the previously vacant hotel aims for a more efficient and sustainable use of inner-city areas, while simultaneously creating an attractive offering in a high-demand sub-market. He also highlighted the trusting and successful collaboration with Dunman Capital Partners. Henning Zimmermann, Partner at Dunman Capital Partners, added that the property in Berlin-Charlottenburg ideally fits the strategy of repositioning properties in central, urban locations for future-proof uses. He pointed out that serviced apartments combine flexibility, quality of living, and efficiency – qualities that are increasingly in demand in dynamic metropolises such as Berlin. The partners look forward to working with Tikehau Capital to bring a high-quality, sustainable product to the market and unlock the previously untapped potential of the location.
Advisory Parties
Legal advice for Tikehau Capital and Dunman Capital Partners was provided by McDermott Will & Schulte and Bogner Hensel Partner (BHP). Colliers International supported the transaction in commercial matters.
