Berlin and Leipzig
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In 2005 Woodsford identified an opportunity to invest in the German residential property market and Berlin in particular. The City was starting to grow again and its economy undergoing significant structural reform. This included the relocation of government ministries from Bonn and the establishment of important economic clusters in biotechnology and media. Other growth sectors include corporate services and healthcare. Leisure and tourism are also seeing rapid development.
Gross rental yields were high and the financing climate favourable creating a positive yield gap. Nominal rent levels were relatively low and rental growth anticipated. Woodsford seized the opportunity and helped create an investment portfolio now worth in the region of €40m. Post the financial crisis the German economy is holding up well but the world remains a very uncertain place for investors. Against this background steady returns underpinned by real assets are at a premium and we look to retain our involvement in this project for the foreseeable future. |