German real estate investor Aggregate Holdings has acquired the 183,000 m2 mixed-use Fürst project on Berlin’s prime Kurfürstendamm.
Aggregate Holdings acquired the project, formerly known as Kudamm-Karree, from a subsidiary of property investor Vivion and says it has a targeted gross development value of up to €2.5 bn.
Corestate subsidiary Aggregate Financial Services (AFS) structured and placed €1.02 bn of debt finance to acquire and complete construction of the scheme, acting as global co-ordinator.
Corestate bought AFS last month and is relaunching the business as Corestate Bank.
Fürst, which means prince, is being developed by Cells as 183,000 m2 (gross) of office, co-working, hotel, restaurant and retail space plus a theatre and museum.
Aggregate said the acquisition is part-yielding, with over 20% so far completed and let to tenants.
It added that, including a capex reserve account of some €250 mln, the total financing is €1.25 bn. The purchase price is confidential.
Aggregate already owns Quartier Heidestrasse in the German capital. Benjamin Lee, chief financial officer and John Nacos, chief investment officer at Aggregate Holdings, said: 'The purchase of (Fürst) provides Aggregate with an unrivalled scale in central Berlin, with two excellently-located mixed-use quarters with a highly-efficient lettable footprint totalling c. 340,000 sqm.
‘The expected combined rental income of around €125 mln will transform the yielding profile of Aggregate.’
Aggregate's main shareholder is Guenther Walcher.
René Parmantier, CEO of Corestate, said: 'The financing impressively demonstrates what Corestate is capable of delivering. The acquisition of AFS at the beginning of this year was the right strategic decision, which is already bearing fruit after such a short period of time.
‘The market for real estate private debt offers us considerable opportunities due to the increasing regulatory requirements for banks, which we intend to and will use with the future “Corestate Bank” as a financing platform for the entire real estate life cycle.’
AFS was founded in 2018 and has arranged more than €3 bn of real estate financings.
