AXA IM - Real Assets has acquired TechnoCampus, a landmark office complex in Berlin, Germany, from Caleus. As part of the transaction, Caleus will retain a minority stake and work with AXA IM - Real Assets’ local asset management team to deliver the proposed development.
Situated in Siemensstadt, in the Spandau District, on the fringe of Berlin’s CBD, the 48,000m² TechnoCampus comprises four buildings of between five and ten floors, providing c.39,000m² of office space, of which approximately 25,000m² has been extensively refurbished since 2013, alongside storage space and parking for 380 cars. Offering flexible and modern floor plates of between 500 and 5,000m², the complex is let to a diverse mix of tenants.
Based on the building permit obtained by the vendor and in line with its value add strategy, AXA IM - Real Assets and Caleus will develop two further buildings with 20,000m² of Grade A office space, which is expected to be completed by the end of 2021. The development will further contribute to the Campus character of the site.
The Berlin inner city fringe market is characterised by low vacancy levels trending downwards and increased demand for Grade A office space from occupiers looking for properties with a lettable area in excess of 20,000m² outside of the CBD, where vacancy rates have fallen to c. 1%. Average rents remain significantly below CBD levels, despite growing occupier demand as the area has undergone a regeneration from a mainly industrial area into a modern, mixed-use district, home to a number of global technology and research companies.
The Siemensstadt submarket offers excellent accessibility to the CBD, via two nearby underground stations, whilst both the motorway and Airport Tegel, Berlin’s main international airport are a short drive. The area’s growing desirability is further underlined by the recent decision, supported by the City Mayor, to develop, over the next decade, a major innovation campus in the direct vicinity of TechnoCampus.
John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, commented: “Located in a sought after and established submarket of Berlin, which is seeing growing interest from a range of blue-chip occupiers, this landmark asset aims to provide our investor clients with a clear and rare opportunity to significantly enhance returns through a programme of refurbishment, re-leasing and re-positioning. By delivering one of the first institutional quality office buildings outside of the Berlin CBD, we will be able to materially improve the rental tone, in line with our value add strategy.”
