Invest Berlin 1Q2019

Transaction volume: €2.2bn


Press release | Hamburg
08.04.2019


The German capital has started the year 2019 with new record results. Investments in commercial properties totalled €2.2bn in the first quarter, which translates into an increase of 149 % against the prior year. Berlin was thus the only one of Germany’s top 7 cities to post growth in the 1st quarter. “We can report that the investment market in Berlin started the year in highly successful fashion. These record figures are especially due to the transaction involving the “Oberbaum City” portfolio and the sale of the “Pressehaus”; these properties were priced at €475m and €365m respectively,” says Holger Michaelis, managing director of Grossmann & Berger, a member of German Property Partners (GPP).

Market details:
  • The biggest contribution to this record figure for the start of a new year was made by the sale of the complex of office buildings in the “Oberbaum City” portfolio, for which Blackstone Group paid UniCredit (HVB) €475m.
  • Tishman Speyer’s sale of the “Pressehaus” to GEG added a further €365m.
  • In the 1st quarter of 2019 office properties accounted for transactions totalling €1.6bn and 75 % of the market, thus remaining the most sought-after class of asset, ahead of mixed use real estate (13 %.)
  • Portfolio sales comprised a significant share of the volume traded in Berlin, posting 25 % of the total.
  • In the 1st quarter the prime net yield on office properties fell slightly to 2.9 %. On commercial buildings the prime net yield remained stable at 2.90 %.
  • The annual volume of transactions is expected to be on a similar level to that in 2018. Grossmann & Berger expects to see a total of around €7.0bn. 

 Investment market | Berlin | 1st quarter 2019

Berlin investment market 2019/Q1
Transaction volume [€ millions] 2,145
against prior yr [%] +149
Take-up in CBD [%] 18
Proportion of international investors [%] 37
Prime net yield, office [%] 2.90
against prior yr [percentage points] -0.10
Prime net yield, commercial buildings [%] 2.90
against prior yr [percentage points] 0.00
Prime net yield, logistics properties [%] 4.20
against prior yr [percentage points] -0.30
Strongest asset class Offices
Strongest asset class [%] 75
Source: Grossmann & Berger GmbH

            

 





Selected transactions | investments in Berlin | 1st quarter 2019

Project/property
Street no.
Sub-market Asset class Buyer/investor Vendor Purchase price*
[approx. €m]
“Oberbaum-City”, Rotherstraße Friedrichs-hain Offices Blackstone Group UniCredit (HVB) 475
“Pressehaus am Alexanderplatz / New Podium”, Karl-Liebknecht-Strasse 27 Mitte Offices GEG German Estate Group Tishman Speyer 365
“Zoom”, Joachimsthaler Strasse 4 Ku’damm plus side roads Mixed use Bayerische Versorgungskammer BVK (pension fund) Hines 265
*The purchase prices stated are based on publicly available data, where none is available an estimate is made; Source: Grossmann & Berger GmbH

Press contact

Visitenkarte
Berit Friedrich


Bleichenbrücke 9
20354 Hamburg

b.friedrich@grossmann-berger.de

040-350 802 620
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