German lender pbb Deutsche Pfandbriefbank has provided a €170 mln loan to Frankfurt-based GEG German Estate Group to finance its acquisition of two properties on Berlin’s Alexanderplatz.
GEG announced in April that it was acquiring 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, from Tishman Speyer in a €365 mln deal.
The high-rise property will be ready for occupancy this year and the New Podium building is scheduled for handover in 2021. With the exception of the ground floor and office space on the first floor, the former publishing house has been let on a long-term basis and the first floor spaces have already been handed over. The New Podium asset is also almost completely let in advance and on a long-term basis.
Gerhard Meitinger, head of real estate finance Germany at pbb, which has concluded several previous financing transactions with GEG, said: ‘The planned new development means an effective and attractive redensification of the property. The very good and sustainable lettability enhances the overall value of the location.’