German investment manager RFR Holding has acquired a multi-let office building in Berlin's Kreuzberg neighbourhood from European property investment firm Avignon Capital for a price in excess of €70 mln.
Built in 1926, Umspannwerk Kreuzberg is an 11,500 m2 property, which was acquired by Avignon in 2015. The asset at the time presented various asset management opportunities, according to Avignon, which went on to reconfigure some of the building's underutilised space and rebranded the asset.
The building achieved 100% occupancy with a diverse tenant mix including Red Bull Music Studios and Coya.
Patrick Flaton, CEO at Avignon Capital said: 'We are pleased to have completed the sale of Umspannwerk Kreuzberg following the conclusion of the five year business plan.
'Avignon recognised the upside potential in the property as well as the location and our asset management strategy over the hold period has driven the performance and enhanced the building’s presence in the Kreuzberg suburb.
'With low vacancy and strong occupier demand, the Berlin office market remains attractive to us and we hope to invest more over the next year.'
Alexander Koblischek, authorised signatory of RFR Holding said: 'To buy this unique building and property for RFR has only been a consequent step with regard to our real-estate portfolio in Berlin.'
Avignon was advised by BCLP, Warth & Klein Grant Thornton and RFR was advised by Celexis and Hauck Schuchardt.