Barings has purchased an office property in Berlin’s central Mitte district from Westbrook Partners for a pan-European core strategy.
The parties agreed not to disclose the purchase price.
The fully occupied 3,700 sq m property at Leipziger Strasse 124 is made up of 3,210 sq m of office and 490 sq m of retail space, as well as 12 parking spaces. The office, which features an elegant glass façade and modern architecture, was built in 2005 and holds a BREEAM “very good” certificate.
The mixed-use property is placed prominently on the corner of Leipziger Strasse and Wilhelmstrasse, directly opposite the Federal Ministry of Finance and only a few minutes’ walk from local and underground train station Potsdamer Platz. Apart from its excellent connectivity to public transport, the location benefits from the extensive retail, food and beverage, and leisure amenities around the central Potsdam and Leipzig Squares.
Sascha Becker, Managing Director and Country Head Real Estate, Germany, at Barings, said: “Securing such a quality asset in the hotly contested Berlin market for the investors in this core strategy is a testament to Barings’ on-the-ground knowledge and global expertise. The property’s central location, its diversified tenant base across office and retail space, its environmental credentials, and the rental potential combine to make the asset a strong investment for a long-term strategy. We continue to see opportunities in Berlin, both in the redevelopment of existing stock and delivery of new projects and are open to entering joint ventures with developers. “
Gunther Deutsch, Head of Transactions Europe and Managing Director, Germany, at Barings, said: “In 2021, we closed €600m of office transactions in our target markets Germany, Netherlands, United Kingdom, Italy, France, Spain and the Nordics, including the acquisitions of the Mediapark 6 in Cologne and the Medienzentrum in Düsseldorf. In 2022, we will concentrate on developments and refurbishments in the European office markets, investing across the entire risk spectrum – from value-add via core-plus to core.”