Tristan Capital Partners has bought a portfolio of mixed-use buildings in Berlin from funds managed by Germany’s DG Anlage Gesellschaft for €117.5m.
The investment manager said it bought the 14-property, 93,280 sqm portfolio for its European Property Investors Special Opportunities 3 fund (EPISO 3).
The purchase takes investments made by the value-add/opportunity fund to 85% of the €950m it raised last year.
Ali Otmar, Tristan Capital managing director, said the German market enjoyed strong fundamentals.
“We anticipate that this portfolio, with its focus on the larger German cities of Berlin, Frankfurt and Leipzig, will deliver attractive returns for our investors through reducing vacancy and harvesting under-rent in larger properties located in key cities,” he said.
Offices make up 60% of the 14 assets, with 17% of space used by retailers ALDI, REWE and local branches of Targobank and Deutsche Bank.
The rest of the portfolio is residential or has other uses, with a total vacancy of 13%.
