aik Immobilien-Kapitalanlagegesellschaft (aik) enlarges its German retail portfolio by an asset in Karl-Marx-Strasse in the south of Berlin. The total investment cost for the acquisition amounted to approx. 57 mln.
The recently refurbished retail property was acquired on behalf of the aik real estate fund apoReal International from B&L group and Centrum Holding. IAM Immobilien Asset Management acted as the transaction advisor.
Top renovated retail asset with first-grade tenants
Built as a Hertie department store in 1967, the building was placed right at the main shopping street of Berlin Neukölln and extensively refurbished two years ago. The building draws the attention of passers-by with its dominant structure as well as its modern exterior design.
The neighboring shopping center Neukölln Arcaden and the numerous retailers along the Karl-Marx-Strasse create great synergy effects for the location.
The building comprises a total of 11,435 m² retail space. 3,434 m² on the upper floors are used by a fitness center and 7,773 m² by a self-storage provider. 402 parking spaces in an adjoined car park are part of the property.
The building is fully let apart from two smaller retail spaces in the basement. The occupants are renowned chain-store tenants numerous textile sellers (C&A, TK-Maxx, 1982 and H&M) as well as big food stores (REWE and Aldi) and the strongly expanding drugstore dm-drogerie markt.
Investments in retail assets in top locations with potential
The observed influx of younger, income-strong population in the last year, especially into the northern part of Neukölln, works towards increased purchasing power at the location.
"The chain-store tenants, each with a well-proven concept, altogether create an efficient mixture of businesses at the location", comments Dr. Stephan Hinsche, Spokesman of aik management board. The flexibility of the letting units speaks in favor of the building when re-letting the property which has the most modern space by far in the near vicinity.
"We are glad that aik shares our estimation with regards to the positive development of Berlin-Neukölln. We believe in positive future of the location. Together with our project partner Centrum, we managed a good contribution towards the development of Karl- Marx-Strasse by refurbishing this property", says Thorsten Testorp, managing partner of the B&L group.
At the beginning of this year, aik already acquired a retail property in Berlin an attractive corner building in the pedestrian zone of the Wilmersdorfer Strasse.