TH Real Estate has created a €1 bn strategic partnership with Edge Technologies, the innovative office development subsidiary of Amsterdam-based OVG Real Estate, to acquire prime Edge office assets for its Cityhold Office Partnership (CHOP), starting with deals in Amsterdam and Berlin.
TH Real Estate has bought the Edge Olympic in Amsterdam, a high-tech, sustainable redevelopment in the South Axis business district, and has inked a deal to purchase Edge Grand Central in Berlin, due for completion in Q4 2019. Together the assets total €200 mln by value and represent 30,000 m2 of prime office space.
The partnership plans to grow the portfolio to €1 bn in the next three to five years, with Edge Technologies retaining 10% ownership of the assets, whilst TH Real Estate will act as the investment manager.
'I’m truly delighted to announce this partnership with TH Real Estate, a leading investor in a sustainable world that shares our vision of smarter buildings and healthier workspaces,' said Coen van Oostrom, CEO and founder of both Edge Technologies and OVG Real Estate. 'This collaboration is a powerful testament to our shared commitment to create positive social, economic and environmental impact in major cities worldwide.'
'This exciting new venture is fully consistent with the Cityhold Office Partnerships strategy of partnering with best-in-class developers on the continent to access high quality office product in core markets,' said Jasper Gilbey, fund manager of the Cityhold Office Partnership at TH Real Estate.
Edge Olympic comprises 11,117 m2 of office and ancillary accommodation over five floors and 100 underground car parking spaces. The building will target BREEAM Excellent and WELL Gold certifications.
Edge Grand Central is located in the Europacity district, a new urban office quarter in central Berlin. It is concentrated around Berlin’s primary train station, Berlin Hauptbahnhof, and will provide 19,416 m2 of office and retail space over nine floors with 80 basement car parking spaces. The building will target a DGNB Platinum rating with a minimum of Gold.
Launched in January by OVG Real Estate, Edge Technologies specialises in developing and managing buildings that are designed to capture data to optimise the user experience and the building’s environmental performance.
CHOP is a pan-European office vehicle managed on behalf of TIAA and AP1 and AP2. It was launched in 2015 and targets both core and value-add office investments in Tier 1 cities across Europe such as London, Paris, Munich, Hamburg, Frankfurt, Berlin, Madrid, Milan and Amsterdam, among others.