Cording Real Estate Group has advised a separate account customer on the acquisition of the office building ”Carrée Seestrasse” from Deutsche Real Estate AG in Berlin for € 225 million, reflecting a price of around €3,480/sq m of lettable area.
The property was built in 1880 and formerly used as an industrial building for light bulb production by manufacturer Osram, it comprises around 64,700 sq m of office, retail and leisure space and provides a loft-style ambiance from its brick stone façade and high ceiling heights of between four and six metres. Cording will manage the property from its Berlin office.
Stephan Schaal, head of investment Germany at Cording, said: “This acquisition represents an opportunity to enhance the profile of the property through selected asset management initiatives. We see clear potential for an uplift in capital values in this up-and-coming location”.
PGIM Real Estate, on behalf of its investors, will provide mezzanine financing to part fund the purchase, with Hamburg Commercial Bank providing senior financing.
Andrew Macland, Head of European Debt at PGIM, said: “PGIM is delighted to have had the opportunity to support Cording in this acquisition, which is our first transaction together in Germany”.
Cording was advised by Clifford Chance on the signing of the purchase agreement as well as on the structuring and financing of the transaction and by Cushman & Wakefield on commercial matters. CBRE Preuss Valteq was responsible for the technical due diligence. Goodwin Procter advised PGIM. BNP Paribas Real Estate acted on behalf of the seller.