Deutsche Investment has announced the sale of an office property in Berlin to London-listed CLS Holdings for €43.5 mln.
The property, which was owned by the Deutsche Investment – Büro I fund in September 2018, was sold as part of the fund’s portfolio optimisation. The rate of return on the asset level is about 45% (IRR). The IRR achieved on the fund level has now increased to around 19% (since the fund launch in September 2018).
Built in 1996, the six-storey office property is located on Kaiserin-Augusta-Allee in the north-west part of Berlin’s Charlottenburg district, and consists of two adjacent buildings directly overlooking the River Spree. It provides 8,700 m2 of lettable space complemented by 93 tenant parking spots.
The entire sales proceeds have already been re-invested in the acquisition of two office properties located in Cologne and Nuremberg, the company said.
‘The successful development of our first office real estate fund, and the feedback from our institutional investors show that demand for office investments remains very strong. Wishing to capitalise on the success, we are now working on the concept design for our second office real estate fund, and we already received the first capital commitments for it,’ said Enver Büyükarslan, the main shareholder of Deutsche Investment.
As with the first fund, the new vehicle will primarily seek to buy office properties in Germany’s ‘Big 7’ cities as well as in selected B- and C-class cities. ‘The first strategy-compliant assets in our deal pipeline are already undergoing their pre-acquisition audits,’ added Klaudia Spychala, transaction manager at Deutsche Investment KVG.
