German bank LBBW is providing a €1.1bn long-term financing to Brookfield Property Partners for the redevelopment of the Potsdamer Platz a mixed-use asset in Berlin.
Brookfield acquired Potsdamer Platz quarter – which was 20% vacant and included office, retail and residential space – in the latter part of 2015.
As at the end of last year, Brookfield had achieved over 90% occupancy rate across the 270,000sqm portfolio after repositioning the estate.
Planning is currently underway for a comprehensive repositioning of the retail space inside the Potsdamer Platz Shopping Arkaden, with construction scheduled to commence in January next year.
Patrick Walcher, the global head of real estate at LBBW, said: “The Potsdamer Platz quarter is one of Berlin’s prominent landmarks—we are really looking forward to accompanying Brookfield Properties as the financing partner for this project.
“The financing represents another important milestone in our histories and strengthens our long-standing business relationship.”
Karl L Wambach, a senior vice president of Brookfield Properties, said: “Since we took over the management of Potsdamer Platz at the end of 2015, we have already been able to implement large parts of our overall strategy.
“Over 90% occupancy rate across the portfolio is proof of this and moving forward, we are planning an extensive modernisation of the Potsdamer Platz Shopping Arkaden and upgrading the public realm to modernise and enhance this dynamic destination for all those who work, live and visit.”