Patron Capital has acquired a 550,000 sq ft office complex in Berlin's Charlottenburg from GE Real Estate for an undisclosed sum.
Patron has purchased the property as a redevelopment opportunity in joint venture with its local development partner Suprema. The asset, which comprises three adjoining buildings on Franklinstrasse and Salzufer is currently vacant and was formerly let to the Technical University of Berlin. The property offers a unique redevelopment opportunity as it will allow Patron to offer large-floorplate office space at attractive rent levels, which is currently in short supply in Berlin's City West submarket. Helaba has provided senior financing for the transaction.
The asset is located in a central location in Berlin's City West area, adjoining Ernst-Reuter-Platz. A leading German bank's commitment to develop a new office complex bringing together several thousand of its employees has re-established this location as one of the most significant office centres in West Berlin. The area also has strong transport connections. The Technical University of Berlin, with its 31,000 students and 8,500 staff, and other prominent academic institutions such as the University of Arts and the Fraunhofer Institute are located in close proximity.
Christoph Ignaczak, Investment Director at Patron Capital, said:
"With its excellent macro and strong micro location, this building represents a unique redevelopment opportunity. Buildings with large floorplates and competitive rents are in high demand in Berlin's City West area and we are already seeing strong tenant interest. We look forward to redeveloping the building with our local partners Suprema – with whom we have already successfully redeveloped the Mollstrasse 1 building in Berlin – in order to meet that need.
"Germany continues to represent a key market for Patron, as evidenced by the significant capital we have invested there over the last 12 months. We see strong opportunities for growth in Germany and the German speaking countries and intend to continue our significant investment programme over the coming two to three years."