IED buys in Berlin
Schroder Real Estate has acquired the Victoriastadt Lofts in Berlin for a joint venture of Immobilien Europa Direkt (IED), an investment vehicle of the Zurich Investment Foundation, and the Finnish pension fund Ilmarinen. The purchase price for the property is over 130 million euros.
The office building comprises more than 68,500 sqm of office and warehouse space, is almost fully leased and is located in the growing Friedrichshain district.
The multi-tenant building has a long-term secured cash flow, which is predominantly supported by government-related tenants. The weighted lease term is a good 6.5 years. The anchor tenant on around 50 percent of the space is Deutsche Rentenversicherung. Other well-known tenants include Deutsche Post, the market research institute Forsa and the Internet company Rocket Internet.
Sascha Harms, Managing Director of Schroder Real Estate in Germany, says: "The property is a strategic investment for us in Friedrichshain. We expect growth and further development for the district in the next five to ten years. Ostkreuz is a dynamic market, the infrastructure is good and is being continuously developed, which will enhance the area in the long term."
Immobilien Europa Direkt is a fund of Zurich Investment Foundation that invests in commercial real estate in the Western European market. (ah)
