Fully refurbished office building with floorspace of 40,000 sq m - Completion of forward deal planned in H1 2018
Allianz Real Estate has purchased the 40,000 sq m office redevelopment known as "EightFloors" on Franklinstrasse in Berlin's Charlottenburg. The sellers are Patron Capital Partners and its long-standing local partner Suprema. Allianz was able to secure the property early in a forward deal for a value of circa €175 million. Closing will take place after completion of the ongoing refurbishment in 2018.
Having purchased the property in 2015 as a redevelopment opportunity, Patron relaunched it in 2016, adding a landmark glass tower on the corner of Franklinstrasse and Salzufer, a new reception, roof terrace, lounge and entrance areas, as well as landscaped courtyards. This was designed by renowned architect Gewers Pudewill.
Upon completion in 2018, the office complex will be fully refurbished and extended. Allianz will apply for a Silver certificate by the DGNB German Sustainable Building Council.
The eight-storey asset offers large floorplates of up to 4,500 sq m, which are in short supply in Berlin and its City West submarket. The multi-tenant structure includes mostly tenants who particularly benefit from being in the immediate vicinity of the Technical University of Berlin with its 31,000 students and 8,500 staff, and other prominent academic and business institutions such as the University of Arts and the Fraunhofer Institute which are located in close proximity. To date, the property has already been 83% leased.
Annette Kroeger, CEO of Allianz Real Estate Germany said:
“This acquisition is intended to further strengthen our presence in Berlin and enable us to profit from the very dynamic office market there. With high demand on Berlin’s office market, available premises with a central location are few and far between. Rents are therefore rising and vacancies dwindling.”
Keith Breslauer, Managing Partner at Patron Capital, said:
“Following the enhancements we have made, EightFloors has successfully attracted tenants by offering high-quality office space in a sought-after location. Under our bespoke renovation program, we have created a contemporary workspace with a wide range of on-site amenities and flexible floorplates that meet the needs of modern occupiers and can accommodate both smaller lettings and larger requirements.
We are very pleased to have sold this office complex ahead of plan, representing a strong return for our investors.
Germany is a key market for our near €1 billion new Fund V and we look forward to investing further significant capital here over the next few years."
Patron was advised by Hogan Lovells and Noerr; Allianz was advised by CBRE, Clifford Chance and Engel&Völkers.