The AXA real estate team of AXA Investment Managers Deutschland has completed the acquisition of Park Kolonnaden, a mixed-use building in Berlin, from a subsidiary of HVB Immobilien for EUR50 million.
The deal is on behalf of a newly created joint venture structured between two institutional clients.
This 17,417 sqm high quality core asset comprises 8 floors, 15,748 sqm of office space, 1,669 sqm of shops, as well as car parking spaces. The building is currently 95 per cent let to public institutions and corporates tenants, with an average lease length of four years. The largest tenant is a German Government Institution which occupies 60 per cent of the building with long lease agreements.
The property is in a prime location on Potsdamer Platz, the German capital’s commercial centre with direct access to underground railways, and in close proximity to both the Brandenburger Tor and the Reichstag.
Matthias Leube, managing director of real estate within AXA Investment Managers Deutschland, says: “This acquisition provides a further indication of our increasing activity within the German market, and our ability to source high quality assets through bespoke investment vehicles for our clients.
“This is a high quality asset with an attractive return in the current market environment, with a strong tenant which is in a prime location in the centre of Germany’s capital city. After twenty years, Berlin is now really living up to its potential both as a place to live and work, making it increasingly attractive for young professionals and corporate occupiers. This trend underpins the positive long-term prospects for the real estate market in Berlin which still offers great value in comparison to the capital cities of Europe’s other two leading economies.”