BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has acquired an office complex in Vienna and the Franklinhaus office building in Berlin on behalf of the Next Estate Income Fund III.
Both transactions were brokered as off-market deals. Financial details were not disclosed.
The Berlin property, Franklinhaus, was completed in autumn 2021 and encompasses roughly 11,500 m2 in total rental area.
It is composed of seven floors plus an underground parking offering 62 spaces for cars and 88 spaces for bicycles. The upper levels of the building can house up to four rental units each and offer flexible offices plus loggias and rooftop terraces.
Franklinhaus is certified LEED Gold and is fully let to multiple tenants. Situated in Franklinstraße 26 a/b in Berlin’s Charlottenburg district, it was sold by Consus Real Estate, a subsidiary of the Adler Group. In this transaction, Linklaters acted as legal advisor to the buyer.
Said Dorothea Koestler, fund manager at BNP Paribas REIM: 'We are happy with this new acquisition which fits perfectly into the NEIF III fund’s strategy and helps strengthen its portfolio by adding a recent, fully-let asset, located in one of the main city in the Eurozone.
'Thanks to its innovative construction, the asset meets the high expectations involved in today’s working practices and promotes the well-being of those who work there. In addition, the asset is certified LEED Gold and therefore comply with the environmental commitments of BNP Paribas REIM, which aims for greater sustainability for its funds.'
The Vienna asset encompasses a five-storey stock building and a six-storey new-build featuring roughly 19,800 m2 in total rental area. The offices are composed of flexible layouts and a landscaped interior courtyard, which offer the perfect spaces for the well-being of the tenants.
Both buildings will be LEED certified and are fully let to well-known companies from different sectors.
The asset is located in Pottendorfer Straße 23 – 25 in Wien-Meidling, in the Wienerberg submarket southwest of the city centre. The asset was sold by S+B Gruppe AG and the List Group in a joint venture. In this transaction, CMS Austria acted as legal advisor to the buyer.
Said Isabella Chacón Troidl, CIO of BNP Paribas REIM Germany: 'This latest investment adds an exciting location to our Next Estate Income Fund III portfolio.
'Vienna holds tremendous potential for innovation and is home to countless companies as well as the largest university in the German-speaking countries. All of this makes the city an attractive location for employers and employees alike.
'These advantages can be seen in the numbers as well with Austria’s capital experiencing an above-average increase in the number of office workers over the past 25 years.'
The Next Estate Income Fund III is an open-ended pan European fund managed by BNP Paribas REIM that was launched in 2017, offering diversification in the office sector in the Eurozone countries to international institutional investors and a focus on sustainable development.
In 2021, the fund illustrated its commitment by selecting a SFDR 8 classification. NEIF III reported €759.4 mln in gross asset value (GAV) as at 31 December 2021.
The fund is currently reviewing other assets in the Eurozone’s major cities. Next Estate Income Fund III’s objective is to generate regular, stable income with a net distribution of roughly 4% per year.
