Dutch pension fund manager PGGM and Rockspring Property Investment Managers have closed the first deal in the Kreuzberg district of Berlin for their new joint venture that has initial funding of €250 mln to invest in the German capital.
The acquisition in Kreuzberg comprises a former factory site totalling 9,270 m2 at Ritterstrasse 12-14. The seven-storey property is fully let to a range of tenants on short term leases and includes an undeveloped site with a building permit for 5,520 m2 of lettable space. Construction on this project is scheduled to start at the end of the year.
'We are extremely pleased with this next step in our partnership with Rockspring,' commented Thijs van Gelder, director PGGM Private Real Estate. 'The economical and demographical developments are making Berlin a very attractive location for young and highly educated people and fast growing tech companies. This results in strong demand for modern office space.'
He added: 'As the supply is limited this partnership will focus on creating additional space and increase the sustainable performance of the assets and take care of the wellbeing of its tenants.’
The jint venture will focus on Berlin value-add offices for companies in dynamic sectors including media, telecommunications and technology. Key locations will include Kreuzberg, Mitte, Friedrichshain and Mediaspree.
The joint venture expects to close four to six transactions over the next 18 months, focusing on existing assets. Rockspring’s Berlin office will source and asset manage the portfolio.
'As a business, we have partnered with PGGM for over 20 years and to that end, we are thrilled to be extending that relationship further by way of this joint venture,' said Paul Hampton, partner at Rockspring.
To date, the 20-year partnership between PGGM and Rockspring has invested €950 mln in German retail real estate.
