TLG Immobilien has bought an office property at Kapweg 3-5 in Berlin for €32.1 mln from a private seller.
Located near Tegel airport, the property was built in 1997 and features seven floors with flexible space totalling 18,200 m2. Current occupancy is at 40%, with tenants including office users and medical practices, generating around €740,000 p.a. in rents. TLG said there was significant potential to increase rental income by repositioning the property.
'This was just one of the reasons why we acquired this property, as there is very little available space on the Berlin office market due to the high level of demand and the letting opportunities will therefore be outstanding. We are certain that we will be able to reduce the vacancy rate of this property quickly and in doing so boost its potential', commented Niclas Karoff, member of the management board of TLG Immobilien.
The weighted average lease term (WALT) in the property is 5.9 years. The property features an underground car park with 182 parking spaces and is connected to public transport and the A 100 Autobahn.
Colliers International advised on the transaction.
