German fund manager Union Investment has acquired Mitte Town Hall in Berlin for EUR87.4m on behalf of its institutional open-ended real estate fund.
The vendor of the property is a joined venture of a fund advised by Tristan Capital Partners and Caleus Capital Investors.
Union Investment said it bought the office building for UniInstitutional European Real Estate.
Built in 1988, the 13-storey building, which offers 20,000sqm of space, is let to the federal state of Berlin.
The assist also has a separate two-storey building which contains a cafeteria and a conference hall.
Alejandro Obermeyer, the head of DACH region investment management at Union Investment Real Estate, said: “For a conservative, long-term investment manager such as Union Investment, Mitte Town Hall represents an exceptionally good investment opportunity.
The Berlin Mitte district continues to perform very well overall, Obermeyer said, adding that the vacancy rate in the office segment is at a historic low of 2%, and the federal state of Berlin is an extremely reliable occupier.
”For all these reasons, Mitte Town Hall is an excellent fit with our existing holdings,” Obermeyer said.
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