Ardian’s European real estate fund has added a fourth German asset to its portfolio.
The Ardian Real Estate Europe Fund (AREEF), together with a co-investor, has bought an office complex at Lützowstrasse 105/106 in Berlin from a fund managed by JP Morgan Asset Management.
Financial details were undisclosed, but the manager said the fund has assets of more than €700m.
Built in 1974, the complex was last renovated in 2000. The manager said it will further modernise the office complex extensively by the end of 2019.
The complex has 30,000sqm of rental space and consists of a main building with six floors, an eleven-story tower and a car park with more than 200 parking spaces. The building is 87% let.
Bernd Haggenmüller, a managing director of Ardian Real Estate, said: “The high demand for office space in central Berlin, combined with limited availability, enables significant rental and value growth potential for modern and attractive projects such as the office complex at Lützowstrasse.”
The Lützowstrasse 105/106 property is the second investment by AREEF in Berlin and the fourth in Germany.
“We will utilise our asset management expertise to realise added value both for our investors and the tenants of the building. Berlin is well-known for its thriving and diverse business landscape and is therefore an important market for AREEF, which focuses on acquiring and developing attractive core-plus and value-add properties in key European cities, Haggenmüller said.
”We are particularly pleased that this transaction represents the first co-investment in Germany with an investor from our real estate fund.”