AXA Real Estate’s German unit has acquired a mixed-use building in Berlin for €50 mln on behalf of a newly created joint venture between two institutional clients.
AXA Real Estate’s German unit has acquired a mixed-use building in Berlin for €50 mln on behalf of a newly created joint venture between two institutional clients.
The vendor is a subsidiary of HVB Immobiliën, which manages all the properties in Germany owned by UniCredit Bank.
The 17,420 m2 property known as Park Kolonnaden comprises eight floors which provide around 15,750 m2 of office space, 1,670 m2 of shops, as well as car parking spaces. Located at Potsdamer Platz, it is currently 95% let to public institutions and corporate tenants, with an average lease length of four years. The largest tenant is a German government institution which occupies 60% of the building.
Matthias Leube, mnaging drector of real estate within AXA Investment Managers Deutschland GmbH commented: ‘This is a high quality asset with an attractive return in the current market environment, with a strong tenant which is in a prime location in the centre of Germany’s capital city. After twenty years, Berlin is now really living up to its potential both as a place to live and work, making it increasingly attractive for young professionals and corporate occupiers. This trend underpins the positive long-term prospects for the real estate market in Berlin which still offers great value in comparison to the capital cities of Europe’s other two leading economies.’
The real estate team of AXA Investment Managers Deutschland GmbH is one of the most active asset managers in Germany with some €6.6 bn of assets under management as at the end-March 2014.
