Frankfurt-based GEG German Estate Group has acquired two properties in Berlin's Alexanderplatz from Tishman Speyer for a total investment of €365 mln.
The deal includes the historical high-rise Pressehaus building, comprising 16 upper floors and a rental space of 24,200 m2, plus the New Podium building, covering 10,300 m2 spread across six upper floors, scheduled for completion in 2021.
'With this investment at Alexanderplatz, one of the Berlin’s top locations with a view to the future, we now have our first presence in the capital – and we intend to seek further opportunities here,' said Ulrich Höller, chairman of GEG's management board.
The Pressehaus scheme also comprises the flat-roofed Pressecafé building, with a rental space of 1,200 m2. The property dates back to 1973 and was fully refurbished recently. It has been a listed building since 2015.
Both buildings are already 90% let on a long-term basis to tenants such as Wayfair, the US online furniture seller, co-working provider The Office Group, and South African media group Napster.
Florian Reiff, Managing Director at Tishman Speyer, commented: 'Our work on the Pressehaus in Berlin adds to our excellent track record of adding value to landmark properties here in Germany. This deal is the latest in a line of value-creating transactions for our investors in Germany and we see no shortage of opportunities to add to these in the coming months and years.'
The acquisitions represent GEG’s first investment in Berlin. Following the transaction, the firm's assets under management rise to €3.6 bn.
GEG was advised by HengelerMüller and Drees & Sommer; Freshfields advised the seller. BNP Paribas Real Estate acted as intermediary.