Henderson Park has completed the acquisition of four Grade A office properties within the renowned and highly distinct Schutzenquartier in Berlin Mitte. The office complex was sold by Caleus Capital Partners. The transaction represents Henderson Park’s third investment in Germany over the past 12 months, having built a portfolio of more than €500m AUM in the country. Based on the asset’s prime location and strong tenant base, Henderson Park has secured a competitive senior financing package. The purchase price was not disclosed.
The acquisition comprises four of the Schutzenquartier’s 12 buildings, which are all accessed independently and offer 20,337m² of predominantly office space along with ground-level retail. Built in 1998 on land formerly occupied by the Berlin wall, the distinctive multi-coloured asset was designed by renowned Italian architect Aldo Rossi and is considered to be one of the most important post-reunification developments in Berlin. A third of the seven-storey properties are let to an occupier related to the German Government, on a newly signed 10-year lease. The remainder of the asset is multi-let to a number of tenants on short leases and includes some current vacancies, presenting an attractive opportunity to capture the property’s rental reversion potential.
While the properties have been acquired in good condition, Henderson Park is planning an active asset management programme to allow it to further capitalise on their in-demand location. This includes investing in consolidating units and improving the buildings’ overall quality and appearance, as well as leasing vacant space.
Nick Weber, Founding Partner of Henderson Park, commented: “While the world currently faces a challenging economic backdrop, we remain firm believers in the long-term strength of the Berlin office market, and this established micro-location in particular. The city has constrained supply, likely to be exacerbated by COVID-19 delaying new developments, and attracts a diverse and increasingly international occupier base, giving the market an inherent resilience. We believe the current situation will only increase the demand for institutional quality, stabilised assets. Schuutzenquartier adds another landmark European asset to Henderson Park’s portfolio and presents us with a clear opportunity to create value through a programme of refurbishment, re-leasing and re-positioning.”
