An Israeli-owned real estate company, Aroundtown, is set to make a fortune from Germany’s migrant crisis, as Berlin plans to pay it €157 million to house 1,500 migrants in an office complex through 2035. The firm is already earning €143 million from another property in Lichtenberg, and if this new deal goes ahead, Aroundtown could rake in €300 million over the next decade.
The office building in Berlin’s Westend, at Soorstrasse 80, would generate a rent nearly double the area’s market rate. At €25.02 per square meter, the rent includes €8.80 for converting the office into a migrant shelter, a cost not reflected in local rental prices, which average €14.46 per square meter. With maintenance costs running three times higher than average, the Berlin Senate will pay €1.2 million a month, with annual rent hikes of 3%. Over 10 years, Aroundtown stands to earn €156.7 million from this one deal alone.
Critics argue that the Berlin Senate, under Mayor Kai Wegner, is putting the needs of migrants ahead of local residents, claiming the deal benefits a Luxembourg-based firm with little regard for the city’s community. Some even accuse the government of profiting from mass immigration while the real estate market struggles.
