Austria-based office specialist CA Immo has sold its latest development project, The Cube office scheme in Berlin, to TH Real Estate.
The transaction volume was not revealed for the 18,500 m2 standalone building, which will rise in the Europacity district next to Berlin's main train station. However, CA Immo's total investment for the scheme, including the value of the plot, amounts to around €100 mln.
CA Immo said it would complete the project and let it on behalf of TH Real Estate, which purchased the asset for its Europa Cities fund.
'The Europacity quarter, which is developed by CA Immo, is now an established office district under strong demand from tenants. Moreover, Berlin is booming and the supply of modern office space has become extremely tight,' commented Frank Nickel, CEO of CA Immo. 'The successful sale of our office project The Cube, which we are constructing on an absolutely prime site in Berlin, will make a significant contribution to earnings and give us the economic scope to realise other development projects for our own portfolio at the same location.'
'Berlin ticks the boxes as a future-proof investment destination by way of its growing population, increasing office workforce and as an education hub,' said Liz Sworn, Europa Cities fund manager at TH Real Estate. 'The Cube represented a rare and exciting opportunity to purchase a prime office building in one of our key investment cities. Office vacancy rates in Berlin are at historic lows of 4.5%, a consequence of strong demand for space and a shortage of new office stock. We believe that the increasing shortage, particularly of modern space, should lead to a strong occupational demand for space in The Cube. Furthermore, its high-quality, sustainable fit-out spec is well aligned with our objective to create and protect assets for Tomorrow’s World. It is our belief that this will be among the best office buildings in the City when completed."
Construction should start on the scheme this month, which will be completed in 2019.
Designed by Danish architects 3XN, The Cube is located by the bend in the River Spree, opposite the German Federal Chancellery, and next to two other CA Immo projects. CA Immo said it also holds land reserves within Europacity which will enable it to construct further offices worth around €600 mln.
