German insurer Allianz has bought a €175m office redevelopment project in Berlin.
Its subsidiary Allianz Real Estate is buying the refurbished project from private equity investor Patron Capital and Berlin-based investment company Suprema.
The 40,000sqm EightFloors project in Berlin’s Charlottenburg was bought on behalf of Allianz companies.
Closing will take place in 2018 after completion of a refurbishment.
Annette Kroeger, chief executive of Allianz Real Estate Germany, said: “This acquisition is intended to further strengthen our presence in Berlin and enables us to profit from the very dynamic office market there.
“With high demand on Berlin’s office market, available premises with a central location are few and far between. Rents are therefore rising and vacancies dwindling.”
Having purchased the property in 2015 as a redevelopment opportunity, Patron Capital added a glass tower, new reception, roof terrace, lounge, entrance areas and courtyards.
Keith Breslauer, managing partner at Patron Capital, said: “Following the enhancements we have made, EightFloors has successfully attracted tenants by offering high-quality office space in a sought-after location.”
The property is 83% leased.
Breslauer said Germany is a key market for its fifth fund. “We look forward to investing further significant capital here over the next few years,” he said.