Ardian, a world-leading private investment house, announces today it has signed an agreement with an investor in its fund to acquire an office complex at Lützowstrasse 105/106 in the central district of Berlin from a fund managed by J.P. Morgan Asset Management. Financial details of the transaction will not be disclosed.
The property is the second investment by the Ardian Real Estate Europe Fund (AREEF) in Berlin and the fourth in Germany. The fund has assets of more than €700 million under management.
Built in 1974, the complex was last renovated in 2000 and fulfils modern office standards. Ardian will further modernize the office complex extensively by the end of 2019. The property is located in the direct vicinity of Potsdamer Platz and the city park at Gleisdreieck, one of Berlin’s most sought-after office locations, and has excellent connections to local public transport. The complex has approximately 30,000 square meters of rental space and consists of a main building with six floors, an eleven-story tower and a car park with more than 200 parking spaces. At present, 87 percent of the building is rented out to more than ten companies. The long-term main tenant is the internet provider I/P/B. A significant portion of the rental area is up for renewal or reletting in the coming years.
Bernd Haggenmüller, Managing Director of Ardian Real Estate, said: “The high demand for office space in central Berlin, combined with limited availability, enables significant rental and value growth potential for modern and attractive projects such as the office complex at Lützowstrasse. We will utilise our asset management expertise to realise added value both for our investors and the tenants of the building.
Berlin is well-known for its thriving and diverse business landscape and is therefore an important market for AREEF, which focuses on acquiring and developing attractive core-plus and value-add properties in key European cities. We are particularly pleased that this transaction represents the first co-investment in Germany with an investor from our Real Estate fund.”
Other investments made so far by Ardian Real Estate include an office building at Spichernstrasse in Berlin, the Konrad office complex and the Heinemann Bogen office complex (both located in Munich), four office buildings in Paris and an Italian portfolio with office properties in Milan and Rome. AREEF focuses on transactions between €50 million and €150 million.
Ardian is a world-leading private investment house with assets of US$82bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base.
Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 550 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of around 750 clients through five pillars of investment expertise: Funds of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.
PARTIES TO THE TRANSACTION
Herbert Smith Freehills, CBRE PREUSS VALTEQ, taxess, and Cushman Wakefield acted in an advisory capacity during the transaction on behalf of the buyers. Hengeler Müller, Maucher Consult and BFIN advised the seller. Debt financing for the transaction was p