Meyer Bergman, the private equity real estate investment manager, has unveiled plans to create a unique office campus in one of Berlin’s most vibrant, forward-looking neighbourhoods after purchasing an iconic 1920s power station which is ready for redevelopment.
Meyer Bergman European Retail Partners III has acquired the asset, which comprises the vacant power substation building along with an in-place preliminary permit to build a new 2,600 sqm GLA five-storey building on the adjacent land plot. The terms of the transaction are not being disclosed.
The asset is located in Neukölln, in the south eastern part of Berlin, an area which has been experiencing high demand for office space in recent years, particularly from co-working operators, start-ups and creative businesses.
The business plan is to refurbish the existing building and convert it to office space and develop a new warehouse-style modern office block complementing the power station, as well as a landscaped courtyard between the two buildings. The acquisition represents an opportunity to capitalise on the growing demand and rising rents for office space in the area.
Marcus Meijer, Chief Executive Officer at Meyer Bergman said: “We are very pleased to increase our exposure to Berlin, the fastest growing city in Germany in terms of population growth that is currently benefiting from significant inward investments as a result of Brexit and relocations of ministries from Bonn.”
Meyer Bergman was advised on the transaction by CITYJUNG Real Estate / Berlin. Its lender was IKB.
Separately, Meyer Bergman European Retail Partners III has acquired a 7,400 sqm mixed-use property located on Schulterblatt main street in the Sternschanze district in central Hamburg. The terms of the transaction are not being disclosed.
Henning Zimmermann, Managing Director, said: “Sternschanze is a dynamic and colourful neighbourhood in central Hamburg, undergoing rapid urban regeneration. This transaction represents an opportunity to continue our prime high street mixed-use strategy in continental Europe and increase our exposure to Germany. We believe this investment will enable us to contribute positively to the evolution of the local urban landscape while offering significant value-add potential for our investors.”
Vodafone, Granit and Weekday are anchor tenants in the fully-let property, which comprises retail units on the ground floor and office space on the five upper floors. Hamburg is the second largest city in Germany with a population of over 1.8 million forecast to reach 2 million by 2030 and an economic growth exceeding 2.0% per annum.