The joint venture between Patrizia and PGGM Private Real Estate has sold its four office buildings in Berlin, Germany to Signature Capital. The JV started assembling the portfolio in 2017 through the purchase of individual and predominantly off-market transactions. The assets, which have a total current GLA of circa 35,000m², are located at Ritterstrasse 12-14, Wilhelmstrasse 118, Invalidenstrasse 120-121 and Magazinstrasse 6-7, in the culturally rich districts of Kreuzberg and Mitte, both home to growing tech hubs. The first two properties are 94% and 69% leased, whilst the latter two are vacant and offer refurbishment and re-tenanting potential. Both Ritterstrasse and Wilhelmstrasse include small development sites where permits for 8,584m² of additional creative-style office space have been secured by Patrizia’s asset management team. The purchase price was not disclosed.
Paul Hampton, Head of International Fund Management at Patrizia, commented: “Firstly we must thank PGGM, with whom we have a 20-year long term business relationship, for having faith in both the strategy and our team. It has been a huge success – something that has been made possible by our in-house teams, notably research, deal origination and asset management working so collaboratively together. In many ways, this result also validates our contention that despite the competitive market place, value can be found, and in some of Europe’s most exciting and dynamic cities.”