PGIM Real Estate has acquired an office building in Berlin from PPF Group, as part of a share deal for its European value-add strategy. The property is located in the central business district of Berlin City West and has a total lettable area of around 24,500m² spread over nine floors, with two underground floors containing 410 parking spaces. The multi-tenant property has a diversified tenant structure and a 91% occupancy rate. Tenants include companies such as BDO, Union Investment, Kaufhof Group and the Institute for Quality Assurance and Transparency in Health Care. Located on Katharina-Heinroth-Ufer 1, the office building is within walking distance of the Kurfurstendamm, the Bikini Berlin shopping centre and the Berlin Tiergarten, and is well connected to the public transport network. The purchase price was not disclosed.
Dominik Brambring, head of transactions for Germany and the Netherlands at PGIM Real Estate said: “Berlin is a real estate market with significant growth potential. It continues to gain recognition from national and international companies, driving high demand for adequate office spaces, which is offset by a relatively low supply. This acquisition demonstrates again our ability to identify attractive properties in a highly competitive market, in line with our investment strategy and in the interest of our institutional investors."
