Luxembourg-based office and hotel investor Vivion Investments has agreed to acquire two segments of the Quartier Heidestrasse (QH) project in central Berlin from Aggregate Holdings.
The deal involves the QH Core and QH Spring buildings with 85,000 m2 of office, residential, retail and hotel space, which make up around 15% of the entire quarter and have a gross asset value of €456 mln.
The acquisition of QH Core has been completed, while the closing of QH Spring is subject to certain condition precedents.
The assets are located only ten minutes walking distance from Berlin’s famous government district. The purchase price amounts to €220 mln and will be settled through the handover of 5.5% 2024 Aggregate Bonds that Vivion holds. The bonds will be used by Aggregate to reduce net debt.
‘This acquisition is in line with our company’s strategy of acquiring high quality, income producing assets in prime locations in Germany top tier cities,’ said Vivion’s CEO Sascha Hettrich. ‘We are very pleased with the addition of these assets to our portfolio that increases our footprint in Berlin. In addition, we continue to see strong performance across all of our portfolio and stability throughout, despite turbulent times.’
Following the closing of the QH Core transaction, there are no remaining commitments between Aggregate and Vivion.
‘With this major milestone having been completed, my colleagues and I will continue our strategy of strengthening our capital structure and growing the value of our portfolio,’ commented Cevdet Caner, Chief Executive Officer of Aggregate Holdings.
Aggregate announced in May that it had hired agent CBRE to sell Quartier Heidestrasse, the largest quartier development in Berlin. Quartier Heidestrasse is a new mixed-use development currently being constructed by Aggregate as part of the overall Europa City development close to the central railway station in Mitte, Berlin, with a gross floor area of 371,000 m2. Over 90% of the 236,000 m2 of net lettable area is to be completed by the end of 2023.
