Barings Real Estate Advisers, part of global real estate investment manager Barings, has acquired an office and retail property in Berlin from Cologne-based Silver Cloud Invest and Berlin's Klingsöhr Group on behalf of an institutional investor.
Financial details were not disclosed.
The Roxy Palast asset is located near the town hall in the Friedenau district, and currently provides around 4,000 m2 of space. Constructed in 1929, the building originally housed a cinema alongside other facilities.
The large cinema auditorium is now let to an organic supermarket, while most of the remaining space having already been vacated. The remaining tenants will leave before the year end to allow Barings to start refurbishing and repositioning the property with up to 5,100 m2 of space.
'The Berlin office market is still under pressure with demand for quality space continuing to outstrip supply,' commented Christoph Wittkop, managing director and head of Germany at Barings Real Estate Advisers. 'Once refurbished, the Roxy Palast should prove attractive to a diverse range of tenants due to its combination of historic architecture, individual office layouts and popular urban location.'
Barings will be responsible for both the refurbishment and asset management of the property.
'This is the second value add investment in Berlin that Barings is acquiring for its pan-European investment strategy,' said Gunther Deutsch, managing director and head of Investment Transactions Europe at Barings Real Estate Advisers. 'Berlin is a key European market given the opportunity in terms of rent levels and capital values. We are continuously on the lookout for investment opportunities across the office, retail and logistics sectors in this vibrant city.'
Ebner Stolz and Engel & Völkers acted for the vendors, while Berwin Leighton Paisner LLP and KPMG AG Wirtschaftsprüfungsgesellschaft advised the purchaser.
