Rockspring Property Investment Managers is acquiring Coca Cola's Berlin headquarters from fund manager Deka Immobilien for €59 mln.
Rockspring, acting on behalf of its PanEuropean Property fund, announced on Wednesday that it has exchanged contracts on the 10,000 m2 office building after a competitive bidding process.
The news comes a day after Rockspring sold a portfolio of 22 Eroski supermarkets and a majority stake in a retail park in Spain to Spanish REIT Grupo Lar for €111 mln.
Following the Coca Cola acquisition, which is expected to close in June 2017, Rockspring has transacted over €750 mln of real estate, by value, in the first three months of 2017, making it one of the biggest quarters on record in terms of volume for the pan-European real estate investment manager.
The Q1 figure equates to 65% of Rockspring's 2016 volume of €1.2 bn, which gave it 72nd place in PropertyEU's latest deal and dealmakers ranking.
Coca Cola headquarters
The Berlin building, which has a Gold LEED certification, is located directly on the River Spree in the Media Spree district and has been wholly occupied by Coca Cola on a long lease since its completion in 2013. Since then, the Media Spree district has become a major TMT hub in Berlin with significant office and commercial development around the Mercedes Benz arena and along the river frontage.
Stuart Reid, partner at Rockspring, said: 'We have been focussing on the Berlin office market over the last 18 months and this is our third office investment in the city in recent months.
'With excellent tenant demand driven by strong population and job growth, set against the limited development pipeline, the Berlin office market fundamentals are very favourable for investment. The property is significantly under-rented and offers a very secure income in an improving market with strong macro and micro dynamics. We have considerable capital available for further investment into this market and are actively exploring other opportunities with an eye especially for value-add offices.'
CBRE acted on behalf of the vendor in this transaction.
Established in 1973, Rockspring's PanEuropean fund is one of Europe's longest standing open-ended vehicles. It holds €500 mln of assets, with 55% invested in the retail sector and 45% in offices and logistics. The fund is in continuous capital raising mode to fund additional acquisitions, with a particular focus on offices and logistics.
