Rockspring on behalf of PanEuropean Fund has exchanged on the purchase of the 10,000 m² Coca Cola headquarters building in Berlin from Deka Fonds for just over €59m. Following the acquisition, which is expected to close in June 2017, Rockspring has transacted on over €750m of real estate, by value, in the first three months of 2017 making it one of the biggest quarters on record for the investment manager.
The building, which has a Gold LEED certification, is located directly on the River Spree in the Media Spree district of Berlin and has been wholly occupied by Coca Cola on a long lease since its completion in 2013. Since then, the Media Spree district has become one of the major TMT hubs in Berlin with significant office and commercial development around the Mercedes Benz arena and along the river frontage.
Stuart Reid, Partner at Rockspring said: “We have been focussing on the Berlin office market over the last 18 months and this is our third office investment in the city in recent months. With excellent tenant demand driven by strong population and job growth, set against the limited development pipeline, the Berlin office market fundamentals are very favourable for investment. The property is significantly under-rented and offers a very secure income in an improving market with strong macro and micro dynamics. We have considerable capital available for further investment into this market and are actively exploring other opportunities with an eye especially for value-add offices.”
Flavio Casero, Partner at Rockspring and Fund Manager of PanEuropean added: “The purchase, secured in a competitive bidding process, constitutes an exciting addition to the PanEuropean portfolio. It is completely in line with the Fund’s core investment strategy, which seeks to deliver and exceed a low-risk, long-term income distribution target of 5% per annum, underpinned by enduring locations with robust occupational demand, liquidity and potential for future growth. This purchase, which substantially completes the reinvestment of proceeds from a recent sale, will further strengthen the Fund’s income maturity and risk profile.
“PanEuropean, which now has a value of €500m, with 55% invested in the retail sector and 45% in offices and logistics, remains very much in capital raising mode and, over the short to medium term, we will be looking to deploy any equity raised to further consolidate fund performance and portfolio diversification, with a particular focus on offices and logistics.”
Established in 1973, PanEuropean is one of Europe’s longest standing open-ended funds, specialising in the acquisition and management of commercial property located in major cities and large conurbations in Western Europe and Scandinavia. The Fund's low risk core investment style is characterised by a stable running yield, enhanced by active management and capital appreciation through rental growth, asset improvement, and timely sales.
CBRE acted on behalf of the vendor in this transaction.
