International investment firm Patrizia has purchased an office building in central Berlin, from Real Capital Holding, an investment manager focused on real estate investments in Germany.
The property represents 13,300 m2 of space on a plot of 3,667 m2, which is almost entirely let for another 3.5 years to the Finanzamt Berlin Mitte–Tiergarten under a lease from the BIM Berliner Immobilien Management.
It consists of a 6,800 m2 historic loft building with high ceilings, constructed in 1900, in the backyard and a prefabricated eight story building in the front, which was built in 1988.
Ulf Christiansen, head of acquisitions value add at Patrizia, said: 'This was a great opportunity to acquire a good quality, well connected asset in an improving submarket which is let to a high-grade tenant with government-backed income.
'The asset also offers the opportunity in the medium term to drive rental growth via multiple asset management angles, including a pure reletting, a larger refurbishment and even a partial redevelopment case.'
The property is located on Neue Jakobstraße in the Berlin-Mitte district between Alexanderplatz and Kreuzberg.
'We strongly believe that we can deliver the upside potential to our investors with our local asset management expertise. Despite the challenges of Covid-19, we are confident in the future of well-located offices in key locations such as central Berlin,' Christiansen concluded.
