AEW Europe´s 800-million European core fund, Euroffice, has purchased an office complex, Berlin Nordbahnhof, from Frankonia and LVM.
The office asset is let to the Deutsche Bahn with a lease length of 15 years on a net lettable area of 38,000 m². The asset will be certified with the LEED gold standard.
Jean Lavieille, Co-Head of Fund Management for the Euroffice Fund at AEW Europe in Paris said: "The good quality of this asset and the great covenant of the tenant made this an excellent investment choice for the fund."
Uwe Schmitz, Chief Executive Officer of Frankonia Eurobau AG, added: "This transaction is further evidence for the attractiveness of Frankonias Developments for professional international investors. It also shows the trust in the strong recovery in the German real estate market."
Gereon Kohlgrueber, Director in Investments at AEW Europe in Düsseldorf concluded: "We feel the Berlin regional office market has a very good perspective which makes this an interesting time to buy."
So far this year in Germany, AEW Europe has invested around 400 million in core and value-add assets.
Source: Bellier Financial