European investment and asset manager Cording Real Estate Group has acquired an office in Berlin on behalf of a client for €225 mln from Deutsche Real Estate.
According to the investor, the deal volume prices the office building Carrée Seestrasse in Berlin at around €3,480 per m2 of lettable area.
Built in 1880 and formerly used as an industrial building for light bulb production by manufacturer Osram, the asset comprises around 64,700 m2 of office, retail and leisure space and is let in small units, with a current occupancy of 82%. The largest tenant with 8,500 m2 is Charité, one of the largest university hospitals in Europe.
The property occupies half the block of Seestrasse, Oudenarder-Strasse and Groninger Strasse in Berlin’s up-and-coming Wedding submarket, Cording said. The investor plans to manage the property from its Berlin office.
'This acquisition represents an opportunity to enhance the profile of the property through selected asset management initiatives. We see clear potential for an uplift in capital values in this up-and-coming location,' said Stephan Schaal, head of investment Germany at Cording.
PGIM Real Estate, on behalf of its investors, will provide mezzanine financing to part fund the purchase, with Hamburg Commercial Bank providing senior financing.
Andrew Macland, head of European debt at PGIM, said: 'PGIM is delighted to have had the opportunity to support Cording in this acquisition, which is our first transaction together in Germany.'
Cording was advised by Clifford Chance on the signing of the purchase agreement as well as on the structuring and financing of the transaction and by Cushman & Wakefield on commercial matters.
CBRE Preuss Valteq was responsible for the technical due diligence. Goodwin Procter advised PGIM.
BNP Paribas Real Estate acted on behalf of the seller.
