Schroder Property makes EUR34 million Berlin office acquisition
Schroder Property Investment Management has completed a further acquisition in Germany on behalf of Immobilien Europa Direkt, an investment group of Zurich Investment Foundation.
Immobilien Europa Direkt has acquired the 16,000 sqm Mollstrasse 1 freehold office property in Berlin-Mitte, from Patron Capital, the pan European institutional investor focused on property backed investments, and its joint venture partner Suprema GmbH.
The building is close to Alexanderplatz and located opposite the private members club, Soho House Berlin.
The 10-storey property, which occupies a prominent corner location, has been extensively refurbished and is let to a major tenant on a five year lease. Located in central Berlin, the property has excellent public transport connections and appeals to a wide range of potential occupiers in an area predominated by offices, hotels and retail units. The property has been acquired off an attractive capital value of EUR2,200/sq m and will generate a net initial yield of 6.6 per cent.
Tony Smedley, head of Continental European investment at Schroder Property, says: “We are delighted to announce this purchase in Berlin which adds further critical mass and diversification to the German portfolio of Immobilien Europa Direkt. This is an important continuation of our Pan European acquisition strategy and the property will generate an income return which is accretive to fund performance.”
Christoph Ignaczak, investment director of Patron Capital, says: “Since taking ownership of the vacant Mollstrasse 1 office building in 2011, working with Suprema, we have completely transformed the property; this extensive refurbishment has led to it being fully occupied by a major tenant. Suprema is a long standing existing partner of Patron and represents an excellent example of how we work with partners.”
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