Turnaround specialist buys Berlin scheme from insolvent owner

Activum SG Capital Management has acquired a 22,000-m² office and retail complex in Berlin from an insolvent company. The unnamed vendor and Activum agreed not to disclose the transaction volume for the property located in Greifswalder Strasse in the Prenzlauer Berg area of the German capital. This is the first deal by Jersey-registered Activum since it was established in July 2007 to focus on 'turnaround' and 'special situation' opportunities in real estate, mainly in Germany.

Activum group is led by Saul Goldstein. He previously worked for the Cerberus funds, where he was responsible for the acquisition and management of more than EUR 5bn of European real estate and real estate operating companies.

Goldstein commented: 'As the office building is located close to City East and offers very flexible layouts, we are convinced that they provide an extremely compelling value proposition for tenants who seek alternatives to the Potsdamer Platz and Mitte areas of Berlin. Our professional leasing team will help external brokers and tenants who quickly want very good space at a fair price.'

He said Germany was one of the few investment markets for real estate where opportunities offering attractive returns could be found. 'Because rental rates for commercial real estate in Germany have been depressed for a prolonged period and now again are increasingly under pressure, assets can be purchased for attractive levels. In this environment, turnaround of existing assets is profitable, but requires active asset management and patience. We are constantly monitoring opportunities to find the right investments.'