Cross-Border Arbitrage Savvy

“Monday, June 24, 2013 "Karstadt owner Berggruen earns handsomely with Berlin real estate," reports Wall Street Online. Since 2005, his holding company has invested around 300 million euros in the acquisition and renovation of about 100 residential and commercial buildings in Berlin and Potsdam. Their value is now estimated to be around 450 million euros. The most recently published balance sheets of twelve Berggruen real estate companies show a total investment volume of 417.6 million euros at the end of 2011. In mid-May, his holding company purchased another 80,000-square-meter property in Berlin-Schöneberg. The former headquarters of Knorr-Bremse, a manufacturer of brake systems for rail and commercial vehicles, which has been part of Berggruen's real estate holdings since August 2012, is now home to the online retailer Zalando – a competitor to Karstadt.”

“From Mumbai, the Berggruen Hotels are managed. Under the brand Keys Resorts, which has existed since September 2006, the company purchases land for the expansion of its own hotel chain called Key Hotels. The expansion is moving at an impressive pace. The chain has gone from 0 to 15 hotels in four years, with locations in Mumbai, Chennai, Bangalore (3 hotels each), Puna (2 hotels), Goa, Trivandrum, Ludhiana, Aurangabad, and Mahabaleshwar. The total number of rooms is said to be around 1200. For the calendar year 2013, an additional 19 openings are planned, which are aimed at the mid-segment of the business category. This corresponds to the growing market of Indian business travelers.”