German media giant Axel Springer has sold a construction project in Berlin and the nearby asset, Axel Springer Passage, to Norway's oil-fuelled state pension fund and Blackstone / Quincap in two deals worth €755 mln.
'We are very pleased with the great interest in our Berlin real estate portfolio and the fact that we were able to complete this transaction so quickly. This brings additional liquidity for future digital growth initiatives,' said Julian Deutz, chairman and CEO of Axel Springer.
A purchase agreement was inked with Norges Bank Real Estate Management, manager of the state pension fund, for the media company's new Rem Koolhaas-designed Berlin office, which totals 52,200 m2 over 13 floors. It is located in the centre of Berlin, close to Axel Springer's existing premises. The German media group will lease the building back on a long-term basis on its completion in December 2019. EuroProperty, the week edition of PropertyEU, reported the pending sale back in June.
Blackstone Real Estate Partners Europe V, the private equity group's record investment fund, and QUINCAP Investment Partners have meanwhile signed a deal for the mixed-use Axel Springer Passage, constructed in 2004. The 10-storey building with a total of around 52,700 m2 of lettable space is adjacent to the current Axel Springer offices, and comprises a mix of retail and office space.
After the ownership of the building is transferred at the end of 2017, the media company will continue to lease a significant part of the building until the end of 2020.
In both transactions Axel Springer was advised by JLL and Hengeler Mueller.
As a senior advisor to the board of Axel Springer, Patrick Reich, managing partner of Caleus Capital Investors, led both transactions.
