Austrian listed property firm CA Immo has signed and closed the acquisition of ‘Pohlstrasse 20’, a modern office building located in the prime Potsdamer Platz submarket in central Berlin, in an off market deal worth just over €47 mln.
The property provides around 7,800 m2 of lettable space and is fully let to high quality tenants such as Thyssen Krupp Elevator and Bombardier. The purchase price reflects a day one gross initial yield of 2.7% on in place gross rental income of €1.3 mln.
With an average in place office rent of € 12.50/m2, material rental reversion is expected to deliver in excess of a 5.5% gross yield once stabilized.
The deal follows the acquisition of the ‘Am Karlsbad 11’ office building in April 2020, and start of construction on the ‘Grasblau’ office building in February 2020, both located within the direct vicinity of ‘Pohlstrasse 20’. CA Immo owns roughly €1 bn of assets in Berlin, or approximately 21% of its total portfolio.
’With the ‘Pohlstrasse 20’ office building we are buying a great asset in terms of quality, tenant covenant, and location, in one of the most attractive office submarkets in Berlin,’ said Keegan Viscius, Chief Investment Officer (CIO) of CA Immo. ‘With an existing footprint of four existing buildings and one under construction in the submarket, we have high conviction on our ability to capture rental reversion at this property given recent leasing experience in our existing portfolio (post-Covid) at rents more than double those currently in place at ‘Pohlstrasse 20’. With an active asset management business plan to upgrade and modernize the property as leases roll, we benefit from the immediate rental income secured by high quality tenants and a low rent basis giving a large margin of safety.’
Christof Altendorfer, head of Investment Management Germany and managing director Germany, added: ‘Pohlstrasse 20’ is located in a submarket with resilient tenant demand and a strong upward trajectory in terms of attractiveness. Offering solid building quality, flexible floor plates in different sizes, and a green, leafy environment with outstanding connectivity in the heart of Berlin, ‘Pohlstrasse 20’ increases our footprint in one of our favorite office submarkets where we have continued to witness strong operational performance.’
CA Immo was advised by Poellath & Partner (legal), Mazars (tax & financial), CBRE (technical) and Cushman & Wakefield (commercial).
