Cresco launches sister investment manager; family office that has backed it to tune of €500m backs it again

Daniel Schuldig, co-founder of the Berlin-based real estate development company Cresco Real Estate, has launched the investment and asset manager Cresco Real Estate Investments (CREI). 

The enterprise, domiciled in Luxembourg, is focussing on medium- to long-term leased properties in attractive locations in German metropolitan areas. The investment strategy is focussed on creating value through active asset management and carrying out capex measures to sustainably reduce the CO2-imprint of the properties.

The company’s acquisition strategy is mainly to target office and social real estate. Cresco Real Estate Investments is managed as a sister company to  Cresco Real Estate, which continues to focus on micro-living, office and urban quarter development.

Schuldig said: ‘As an owner-operated investor, we have many years of experience in all market phases.’

‘With our hands-on mentality and our secure financing structure, we are able to act quickly and decisively, especially in the current challenging market environment. Particularly owners of older building stock with investment needs and in complex situations appreciate the transaction security we are able to offer. I am confident that we can exceed our €1-bninvestment target over the next 2 years.’

Alexander de Meyer, CEO of the international multi-family office Alvarium Investments, added: ‘We have already invested around €500 mln equity through Cresco Real Estate. We now will continue our funding support for CREI to enable Daniel and his team to build a portfolio with an attractive risk-return profile in a very difficult market environment.’

‘Apart from the well-established expertise and excellent track record of the CREI partner team, we are fully convinced by their sustainability-focused manage-to-green strategy for existing buildings.’

Cresco Real Estate Investments has already closed two transactions worth a total of €60 mln as seed investments this year. The new company has acquired an office building in Berlin on Tempelhofer Ufer with around 4,000 m2 of GLA from an insurance company. CREI also bought an office building in Hanover from a private owner. The fully let property has around 9,000 m2 of GLA and is leased long-term to the public sector.

The company is also open to institutional investors looking for value-add investments in Germany.

Schuldig has a background in private equity. He once worked at Terra Firma Capital where he invested in asset-based companies. In 2009, he headed the German business of the private equity firm GI Partners, which specializes in real estate investments and real estate platforms.

The other co-founder of Cresco Real Estate is Alexander Bürk.


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