Patrizia has purchased Michaelkirchstraße 20, a newly built office building in Berlin, Germany, on behalf of its institutional clients from Spree Area GmbH in an off-market transaction.
Michaelkirchstraße 20, which was developed in the Berlin-Mitte district by Züblin on the site of a former steam mill and construction, was completed in 2019.
The 4,400 sq m state-of-the-art building is fully let to the headquarters of Urban Sports Club, a company that provides access to various fitness studios, sports classes and health activities via a network of partner facilities, all in one membership.
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Patrizia said both the location and rental yields offer further upside potential.
The newly built office building is situated in a burgeoning office submarket that benefits from excellent transport connectivity. Local public transport stations such as U-Bahn and S-Bahn are located only 5-minutes on foot, while the main line railway station at Berlin Ostbahnhof is accessible in under 15 minutes. The Berlin-Mitte district comprises the historic centre of Old Berlin as well as a significant number of bars, restaurants and other retail provisions.
“We are pleased to have completed the off market acquisition of this new office building in a central Berlin location that is establishing itself as a key submarket due to several other projects being under construction in the area. There is still robust demand for high quality office space that meets the requirements of modern occupiers, including the need for buildings to have strong sustainability credentials. Together with the potential to deliver rental upside in the medium term, we are confident that this property will bring stable, long-term returns to our investors,” said Ulf Christiansen, Director Transactions at Patrizia.