Henderson Park, the pan-European private equity real estate platform, has completed the acquisition of four Grade A office properties in Berlin from Caleus Capital Partners at the height of the Covid-19 crisis.
Financial details were not disclosed.
The deal, which closed on 17 April, comprises four predominantly office assets covering 20,337 m2, and featuring ground level retail. They are located within the renowned Schützenquartier in Berlin Mitte.
Nick Weber, founding partner of Henderson Park, commented: ‘While the world currently faces a challenging economic backdrop, we remain firm believers in the long-term strength of the Berlin office market, and this established micro-location in particular.
‘The city has a constrained supply, likely to be exacerbated by Covid-19 delaying new developments, and attracts a diverse and increasingly international occupier base, giving the market an inherent resilience. We believe the current situation will only increase demand for institutional quality, stabilised assets.’
The transaction represents Henderson Park’s third investment in Germany over the past 12 months, having built a portfolio of more than €500 mln assets under management in the country. Based on the asset’s location and tenant base, Henderson Park said it had secured a competitive senior financing package.
Built in 1998 on land formerly occupied by the Berlin wall, the distinctive multi-coloured asset was designed by Italian architect Aldo Rossi and is considered to be one of the most important post-reunification developments in Berlin.
‘Schu¨tzenquartier adds another landmark European asset to Henderson Park’s portfolio and presents us with a clear opportunity to create value through a programme of refurbishment, re-leasing and re-positioning,’ Weber added.
The acquisition comprises four of the Schützenquartier’s 12 buildings, which are all accessed independently.
A third of the seven-storey properties are let to an occupier related to the German government, on a newly signed 10 year lease. The remainder of the asset is multi-let to a number of tenants on short leases and includes some current vacancies, presenting an attractive opportunity to capture the property’s rental reversion potential.
Stoke Park Capital will be Henderson Park’s local operating partner for ongoing asset management and business plan implementation.
Henderson Park was advised on this transaction by Freshfields, EY, TA Europe and CBRE, while the vendor was advised by JLL, BNP as well as Pöllath + Partners.