Allianz Real Estate, the property arm of the German insurer, has purchased an office redevelopment in Berlin from Patron Capital Parners and Suprema for €175 mln.
Allianz said it had secured the property - a 40,000 m2 office redevelopment known as 'EightFloors' on Franklinstrasse in Berlin’s Charlottenburg - in a forward deal on behalf of several Allianz companies. Closing will take place after completion of its ongoing refurbishment in 2018.
'This acquisition is intended to further strengthen our presence in Berlin and enables us to profit from the very dynamic office market there,' commented Annette Kroeger, CEO of Allianz Real Estate Germany. '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 relaunched it in 2016, adding a glass tower on the corner of Franklinstrasse and Salzufer, a new reception, roof terrace, lounge and entrance areas.
Upon completion in 2018, the office complex will be fully refurbished and extended. Allianz will apply for a Silver certificate by the DGNB German Sustainable Building Council. To date, the property has already been 83% leased.
'Following the enhancements we have made, EightFloors has successfully attracted tenants by offering high-quality office space in a sought-after location,' said Keith Breslauer, managing partner at Patron Capital.
'We are very pleased to have sold this office complex ahead of plan, representing a strong return for our investors,' Breslauer added. 'Germany is a key market for our near €1 bn new Fund V and we look forward to investing further significant capital here over the next few years.'
Patron was advised by Hogan Lovells and Noerr; Allianz was advised by CBRE, Clifford Chance and Engel & Völkers.
