LaSalle Investment Management has acquired a fully-let office building at Charlottenstraße 82 in Berlin's central Mitte district on behalf of a German institutional investor client. The transaction marks a strategic expansion of the pan-European portfolio managed through the firm's Institutional Investment Partners (2IP) platform.
The historic property, originally constructed in 1913 and comprehensively refurbished in 2021, offers over 4,000 m² of leasable space. The entire building is single-let on a long-term basis to the German Federal Ministry of Finance, providing secure, inflation-linked income streams that are particularly attractive in the current economic environment where institutional investors are prioritising defensive assets with government-backed covenants.
Located in the south of Mitte's city centre, the asset benefits from proximity to other government ministries and corporate offices, with strong public transport links via Kochstraße (U6) and Stadtmitte (U6/U2) underground stations. The positioning offers significant potential for rental growth, particularly as Berlin's office market continues to outperform expectations despite broader European headwinds.
Falko Schlafke, Fund Manager at LaSalle, commented: "This transaction, on behalf of our valued institutional investor client, represents a significant opportunity to acquire a property in an excellent location with a strong tenant and an attractive long-term secured income profile."
Alexandre Arhuis-Grumbach, Head of Transactions Europe, Core and Core+ Strategies at LaSalle, added: "With an enviable location, a strong heritage and a long-term let to a public sector tenant, as well as having undergone several high-quality refurbishments, this asset is set to provide stable, long-term income."
The Mitte district continues to demonstrate robust fundamentals, including limited forecasted supply and one of the lowest vacancy rates among Germany's 'Big 7' cities' central business districts. This scarcity of quality assets, combined with resilient rental growth and sustained occupier demand, positions the building to capitalise on market dynamics that favour well-located, government-tenanted properties. JLL, Greenberg Traurig, WSRE and WTS advised LaSalle, whilst Colliers represented the vendor.
People mentioned:
- Falko Schlafke, Fund Manager, LaSalle Investment Management
- Alexandre Arhuis-Grumbach, Head of Transactions Europe, Core and Core+ Strategies, LaSalle Investment Management
- Drew McNeill, Contact, LaSalle Investment Management
Companies mentioned:
- LaSalle Investment Management – Buyer
- German Federal Ministry of Finance – Tenant
- JLL – Transaction advisor (buyer side)
- Greenberg Traurig – Legal advisor (buyer side)
- WSRE – Technical advisor (buyer side)
- WTS – Tax advisor (buyer side)
- Colliers – Vendor advisor
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