Meyer Bergman acquires Karstadt store in Berlin

Meyer Bergman has acquired the Karstadt department store on Berlin's Hermannplatz from the investment consortium Highstreet Holding.

The financial details of the transaction were not disclosed.

The 90,000 m2 building has been purchased by the London-based manager's second value-add fund, Meyer Bergman European Retail Partners II (MBERP II).

The property is one of the largest city-centre department stores in Germany and is fully occupied by the Karstadt retail chain on a long-term lease. The store itself is adjoined by a multi-storey car park with space for 680 vehicles and integrates a block for office and residential use.

Markus Meijer, Meyer Bergman’s Chief Executive, said: 'Germany is one of our key target markets and this investment fits squarely with our strategy of targeting defensive prime assets that present opportunities to unlock value through hands-on asset management. It rounds off a year in which our acquisitions team has successfully sourced assets located in the top shopping destinations in major European cities, which we anticipate will generate superior returns for our investors.'

Meijer added that MBERP II, which is well underway to achieving its €500 mln target size, has had strong backing from its existing investors, including European and Canadian pension funds and endowments.

The fund seeks properties with a dominant market position or in prime locations, and including the Karstadt asset, has a seed portfolio of six assets. Other portfolio assets include the Whiteleys Shopping Centre in London's Bayswater District; assets on the premier shopping streets of Copenhagen, Madrid and Paris, plus the Westfield Broadway shopping centre development in Bradford, northern England.

CBRE, Simmons & Simmons, Arcadis and PwC advised MBERP II on the transaction, while HSH Nordbank provided debt finance.