Hines Immobilien sells ZOOM Berlin office and retail property
Hines has sold distinctive retail and office property ZOOM Berlin to Bavarian pension provider Bayerische Versorgungskammer (BVK) and asset manager SwissLife.
CorpusSireo has been appointed as investment manager. The new-build developed successfully by Hines Immobilien is located between main station Bahnhof Zoo and premiere shopping boulevard Kurfürstendamm. The mixed-use building was completed in October 2018 and up to 90 per cent of the floorspace has been leased. ZOOM Berlin was developed in a joint venture by Hines and a German pension fund. This was the first of currently five projects that were carried out in collaboration with this pension fund. The transaction is subject to antitrust approval. Financials on the deal were not disclosed.
“With ZOOM we have developed a property that harmonises perfectly with the up-and-coming City-West district. It is particularly gratifying that a diverse mix of tenants is enthusiastic about the property – from tech startups through innovative gastronomy outlets to established real estate agents. This is exactly the kind of heterogeneous tenant structure that represents all facets of a diversified quarter. We are particularly delighted that with Bayerische Versorgungskammer and Swiss Life Asset Managers we have found a prestigious consortium of buyers for continuing the future of the project,” says Joachim Wintzer, Managing Director at Hines.
Roy Brümmer, Head of Investment & Transaction, CORPUS SIREO, says: “City-West is experiencing stable upturn. Investing here is a sustainably good decision. We are glad to be able to purchase such a prominent building in an absolute top location in Berlin City-West for Swiss Life Asset Managers and the BVK.”
Christoph Geirhos, Head of Property Purchase and Sales at BVK, adds: “As a long-term oriented investor, the building convinces us not only because of its attractive location, but also because of its excellent quality and flexibility. We are glad to be able to purchase a further top property together with Swiss Life Asset Managers.”
The focus during the development phase was on the mixed use of the building’s floorspace and the exceptional architecture. Firstly, the tenants value the individually tailored modules that morph into different floorspace sizes and usable spaces. Secondly, they like the high recognition value of the building. The lively facade with dynamic recesses featuring landscaped terraces for the tenants is an additional feature. Tenants also benefit from first-class DGNB (German Sustainable Building Council) and WiredScore certification that authenticates the outstanding connectivity for the building and highlights the highest level of sustainability for the owner.
The combination of attributes has provided significant impetus to the success of the concept. The occupancy rate of ZOOM Berlin exceeded expectations during the construction phase. Most of the 16,500 square metres of floorspace in the new-build have already been leased. The main tenant of the building is the fashion
retailer Primark from Ireland, which has leased almost 80 per cent of the retail space out of a total of some 11,000 square metres. There are also numerous innovative gastronomy concepts, such as Burgermeister and Starbucks. The 5,500 square metres of office space have been leased to various businesses including Engel & Völkers and a tech company. Hines also leased floorspace for its own uses during the construction phase.
BNP Paribas and Lührmann acted as brokers. Legal advice was provided on the seller side by Pöllath+Partners and on the vendor side by Taylor Wessing.