German asset manager DIC Asset has purchased an office building in central Berlin for €111 mln.
The vendor in the transaction was Real IS, the property arm of German bank, BayernLB.
Located in the Berlin-Mitte district of the capital city, the asset comprises 10,100 m2 across nine stories, with 38 parking spaces. It is fully let to a banking sector tenant and underwent a refurbishment and extension between 2004-2005. It is expected to deliver around €3 mln a year in rent.
Welcoming the deal, Sonja Wärntges, CEO of DIC Asset, said: ‘With the purchase in Berlin, we secured a modern property in a highly competitive investment market with future potential, whose cash flow will ideally complement our commercial portfolio.’
Jochen Schenk, Real IS CEO, said: ‘Germany’s capital city and the Berlin-Mitte submarket in particular are considered two of the country’s most attractive office locations.
‘With prime rents on the rise, and given the extremely low vacancy rate, a good price level is ensured, an opportunity we are seizing through the sale on behalf of our investors. The success of our active asset management is ultimately reflected in an attractive return for fund holders that will accrue when the liquidation of the portfolio has been concluded.’
Both parties in the transaction were advised by CBRE.
DIC Asset has also acquired an office complex in the German city of Bremen for €41 mln. Comprising two buildings and totalling 17,200 m2, one is 80% leased to tenants from the insurance and logistics sectors, while the other has recently become vacant. DIC intends to carry out refurbishment.