Oxford Properties, the global real estate arm of the Ontario Municipal Employees Retirement System (OMERS), and Madison International Realty have announced that they are to acquire the Sony Center in Berlin for approximately €1.1 bn from NPS Korea. The acquisition marks Oxford’s entry into the Berlin market and an extension of its existing global relationship with Madison.
The Sony Center is a 112,000 m² landmark mixed-use complex in Potsdamer Platz, in the heart of Berlin’s Mitte district. It spans nearly six acres and comprises eight individual buildings, including the iconic Bahn Tower, with 85,000 m² of prime AAA office space, 20,000 m² of retail and leisure space and 67 residential units. Major office occupiers include Deutsche Bahn, Facebook, Sanofi, Sony, the State of Berlin and WeWork, while retail occupiers include LegoLand, IMAX and Cinestar.
Following the recently announced €500m acquisition of Window in La Defense, Paris, this first transaction in Berlin brings Oxford’s Continental European assets under management (AUM) to approximately €2.3bn, representing 40% of Oxford’s total UK & European AUM.
Paul Brundage, Executive Vice President and Senior Managing Director, Europe at Oxford Properties said: “Oxford Properties is pleased to add the Sony Center to our best-in-class global portfolio and gain exposure to Berlin, one of Europe’s fastest growing and most dynamic cities. It will complement our existing Paris portfolio, which now comprises 112,700 m² of space across four properties. This acquisition is a meaningful step toward achieving our stated strategy of reaching C €4.26 bn ($5bn) of assets under management in Continental Europe by 2020, focusing on Berlin and Paris. This strategy is backed up by our longstanding commitment to the Central London office, high street retail and build-to-rent residential sectors. This acquisition gives Oxford the scale to build a platform in Berlin with an ‘on-the-ground’ team.”
Ronald M. Dickerman, president and founder of Madison stated: "Our strategic relationship with Oxford formed around prime assets in Paternoster Square, London has now grown to include the iconic Sony Center in Berlin. We share a commitment to investing in world-class properties alongside world-class real estate professionals which is the embodiment of this transaction. The Oxford / Madison dynamic differentiated itself and will now allow us to close on and execute an impactful business plan on what is the most iconic asset in Europe.”
The acquisition will complete in Q4 2017. CBRE and Greenberg Traurig advised Oxford and Madison; in addition, Freshfields Bruckhaus Deringer represented Madison. Hines advised NPS Korea.
