Patrizia AG has purchased an office building in central Berlin, Germany, from Real Capital Holding, an investment manager focused on real estate investments in Germany. The asset comprises 13,300m² of space on a plot of 3,667m², which is almost entirely let for another 3.5 years to the Finanzamt Berlin Mitte–Tiergarten under a lease from the BIM Berliner Immobilien Management. The property consists of a 6,800m² historic loft building with high ceilings, constructed in 1900, in the backyard and a prefabricated 8 story building in the front, which was built in 1988.
The complex is located on Neue Jakobstraße in the Berlin-Mitte district between Alexanderplatz and Kreuzberg. The micro-location has good local amenities with a number of shops, restaurants, government buildings and historic sites nearby, as well as several recently developed high-end residential buildings. The property also benefits from excellent transport links with three U-Bahn stations and one S Bahn station less than a 10-minute walk away.
Ulf Christiansen, Head of Acquisitions Value Add at Patrizia, said: “This was a great opportunity to acquire a good quality, well-connected asset in an improving submarket which is let to a high-grade tenant with government-backed income. The asset also offers the opportunity in the medium term to drive rental growth via multiple asset management angles, including a pure reletting, a larger refurbishment and even a partial redevelopment case. We strongly believe that we can deliver the upside potential to our investors with our local asset management expertise. Despite the challenges of COVID-19, we are confident in the future of well-located offices in key locations such as central Berlin.”