European real estate investment manager Meyer Bergman has purchased the Karstadt department store in Potsdam, near Berlin, for the Meyer Bergman European Retail Partners III fund (MBERP III). The price was not disclosed.
The 18,700 m2 property on Branderburg Strasse was acquired from a unnamed, private fund, and is two-thirds let to Karstadt. The other tenants include a DM pharmacy, Bio Markt, four rental apartments and office space.
'This modern building is the largest purpose-built mixed-use property in Potsdam's city centre, where modern and efficient retail space is extremely rare,' commented Markus Meijer, Meyer Bergman's CEO. 'We have extensive experience managing properties of this kind and have already identified ways to add value that will respect the integrity of this historically sensitive location.'
Karstadt was the anchor tenant of two other properties in Berlin owned by the predecessor Meyer Bergman fund until their sale in September and October last year, marking six realisations for the fund which had its final close in 2014.
'We are keenly focused on city-centre locations as they are not only where discerning tenants want to be today, but also because they provide numerous exit options,' added Meijer.
MBERP III now has 10 seed assets, after this transaction, representing over €1.6 bn of gross asset value. Aiming for a final close in September, the fund also provides exposure to properties in the centre of London, Berlin, Milan, Dublin and Oslo.
BNP Paribas Real Estate, FPS solicitors and PWC advised MBERP III.
Concorde Capital Partners arranged a senior facility with HSH Nordbank.
