German listed property company TLG Immobilien has bought an office property in Berlin’ Reinickendorf district for a total investment of €50.6 mln.
The Erlenhöfe building on Aroser Allee is let to companies in the healthcare sector including Vivantes and Vitanas, with an occupancy rate of 88.5%. It generates a net rent of €2.9 mln a year, reflecting an initial yield of 5.7%, with a weighted average lease term of 4.7 years.
The property comprises 36,700 m2 of lettable space divided into an older section, which was fully renovated in 1993, and an extension completed in 1997, on a campus-style layout.
Niclas Karoff, of TLG Immobilien’s management board, said: 'It's not simple to find high-quality office properties at reasonable prices in Berlin right now. This is why we're especially pleased to have been able to land this acquisition in our core market of Berlin.'
