LBBW has agreed to provide €1.1bn long-term financing to Brookfield Properties for the redevelopment of the Potsdamer Platz in Berlin, Germany. Berlin's Potsdamer Platz quarter was redesigned in the 1990s following the planning and designs of an international team of renowned architects, led by Renzo Piano, Hans Kollhoff and Sir Richard Rogers. Since December 2015, the Potsdamer Platz (consisting of 17 buildings, ten streets and two squares) has been managed by global real estate services company Brookfield Properties. The quarter's total rental space spans some 270,000m² and has been awarded the silver certificate by Germany's DGNB (German Sustainable Building Council). Among the office tenants are well-known firms such as Bain & Company, Bombardier and Pfizer. Brookfield Properties has achieved over 90% occupancy rate (as of autumn 2018) across the portfolio following the acquisition and repositioning of the estate. In addition to the replacement of a bank consortium, the works will also include a comprehensive repositioning of the retail space inside the Potsdamer Platz Shopping Arkaden. The construction is scheduled to commence in January 2020.
Patrick Walcher, Global Head of Real Estate at LBBW, said: "The Potsdamer Platz quarter is one of Berlin's prominent landmarks—we are really looking forward to accompanying Brookfield Properties as the financing partner for this project. The financing represents another important milestone in our histories and strengthens our long-standing business relationship. Once again, the close, cross-border cooperation between our teams has proven successful. Brookfield Properties benefits from one-stop financing thanks to our established syndication platform, which allows us to perform a sole underwriting of this scale."
Karl L. Wambach, Senior Vice President of Brookfield Properties, added: "Since we took over the management of Potsdamer Platz at the end of 2015, we have already been able to implement large parts of our overall strategy. Over 90 % occupancy rate across the portfolio is proof of this and moving forward, we are planning an extensive modernisation of the Potsdamer Platz Shopping Arkaden and upgrading the public realm to modernise and enhance this dynamic destination for all those who work, live and visit. A strong business collaboration was behind this success and I would like to underline the commitment and professionalism of LBBW."
