Meyer Bergman’s third European retail real estate fund has acquired a vacant power substation building for an office redevelopment and a mixed-use asset in Germany in two separate deals.
The Meyer Bergman European Retail Partners III fund has acquired the 1920s power station asset in Neukölln, in the southeastern part of Berlin and has bought a fully-let 7,400sqm mixed-use property located on Schulterblatt main street in the Sternschanze district in central Hamburg.
Financial details were undisclosed.
The manager said the vacant power substation building has preliminary permit to build a new 2,600sqm five-storey building on the adjacent land plot.
Meyer said it intends to refurbish the existing building and convert it to office space and develop a new warehouse-style modern office block complementing the power station, as well as a landscaped courtyard between the two buildings.
Marcus Meijer, Meyer Bergman CEO, said: “We are very pleased to increase our exposure to Berlin, the fastest growing city in Germany in terms of population growth that is currently benefiting from significant inward investments as a result of Brexit and relocations of ministries from Bonn.”
Henning Zimmermann, managing director, said the Sternschanze transaction ”represents an opportunity to continue our prime high street mixed-use strategy in continental Europe and increase our exposure to Germany.
”We believe this investment will enable us to contribute positively to the evolution of the local urban landscape while offering significant value-add potential for our investors.”
Vodafone, Granit and Weekday are anchor tenants in the fully-let property, which comprises retail units on the ground floor and office space on the five upper floors.