Patrizia snaps up Berlin's highest office tower

German property giant Patrizia has announced the acquisition of Treptower, a landmark asset and the tallest office building in Berlin, Germany, from ARB Investment Partners.

Financial details were not disclosed.

The transaction increases the value of Patrizia’s office portfolio across Europe to nearly €14 bn.

The 32-storey building, comprising 26,000 m2 of lettable space across flexible floorplates, is 99% let to 11 occupiers with a weighted average lease term of 4.2 years. The largest occupier by space is Bundesanstalt für Immobilienaufgaben, the government agency which provides real estate services to federal government departments. Other tenants include navigation specialist TomTom, IT service provider Atos and open banking portal OptioPay.

The Treptower was built in 1998 and benefits from an exclusive riverside location in Mediaspree, an emerging office sub-market in Berlin, which is increasingly seen as an attractive alternative to the CBD. The asset is also situated in close proximity to transport links with easy access to the suburban train circle.

ARB bought the asset in 2013 on behalf of a fund invested by a Japanese institution. It paid €65 mln at the time.

Ulf Christiansen, director transactions at Patrizia, commented: 'This acquisition demonstrates our ability to source and execute landmark buildings, which present attractive investments for our clients. Whilst already producing a secure income stream, the asset also offers upside potential, with an opportunity to grow this income over the medium term, leveraging the property’s location in a dynamic area of Berlin where occupier demand is strong.'

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