Tallest office block in Berlin sold to Episo and Caleus

Property fund Episo and its partner Caleus Capital Investors have bought­­ the landmark Treptowers office building in Berlin from a subsidiary of Allianz Real Estate. Financial details were not disclosed. Berlin-Hannoversche Hypothekenbank provided financing for the transaction.

Built between 1994 and 1998, Treptowers consists of a total of 120,000 m² in lettable space spread across four buildings and involved a development cost of some EUR 500 mln. Episo and Caleus are buying the 125-metre high main tower, which is the tallest office scheme in Berlin. The acquisition also involves a listed office property on Hoffmannstraße and the total lettable area amounts to 35,000 m². The properties are multi-let and have an occupancy rate of 95%.

Oaktree owns the remaining 85,000 m² of Treptowers, which is entirely leased to Allianz.

The investment is expected to benefit from the opening of the new Berlin Brandenburg Airport south of the city in 2012 and the closure of Tegel airport to the north.

Episo, a value-added/opportunistic fund co-advised by AEW Europe and Tristan Capital Partners, has already established a strong presence in the Berlin investment market with a previous purchase of more than 2,600 apartments in Berlin. 'The partnership intends to invest at least additional EUR 100 mln in office buildings in Berlin within the next six to twelve months,' said Gereon Kohlgrueber of European real estate manager AEW Europe, which advised on the sale.

Caleus and Episo formed their joint venture in July 2010 with the aim of investing up to EUR 300 mln in Berlin assets.