Invest Berlin 3Q2019

2019 already best year since records began


Press release | Berlin
10.10.2019


The market for investment in commercial properties in Berlin goes from strength to strength. By the close of the 3rd quarter the transaction volume had reached some €8.2bn - twice as high as in the same period of 2018 (€4.1bn). The previous record set in 2015, when the year-end total was €7.8bn, has already been broken. “A remarkable feature is that by far the biggest slice of this extremely high volume of trading - eighty per cent - is comprised of single property trades. Numerous deals involved nine-figure price-tags. We now expect the final total for the year to exceed ten billion euros, because several other big-ticket transactions are nearing completion,” forecasts Holger Michaelis, managing director of Grossmann & Berger, a member of German Property Partners (GPP).

Market details:
  • 22 transactions (65 %) of the total sold traded at prices north of €100m. In the 3rd quarter, for example, Edge Technologies sold the “East-Side Tower” in Friedrichshain to the Bavarian civil service pension fund Bayerische Versorgungskammer and Allianz Real Estate. This was the biggest new agreement.
  • Professionals’ pension schemes and pension funds were the biggest group of buyers, taking 19 % of the total traded, followed by open-ended property funds (13 %). Almost half of the volume of transactions (48 %) was attributable to purchases made by international investors (2018: 65 %).
  • Once again, office properties were the most sought-after class of assets, taking 68 % of the market (2018: 52 %).
  • The prime yield on office properties was 2.9 % and thus slightly below the prior year (3.0 %). Prime yields on commercial buildings stabilized at 2.9 %.    
  • Commercial properties in central city locations comprised 25 % of the trading volume – slightly higher than the prior year’s 22 %.

Investment market | Berlin | 2019 Q 1-3
Transaction volume [€ millions] 8,160
against prior yr [%] +99
Share of trading in CBD [%] 25
Proportion of international investors [%] 48
Prime net yield, office [%] 2.9
against prior yr [percentage points] -0.1
Prime net yield, commercial buildings [%] 2.9
against prior yr [percentage points] ±0
Prime net yield, logistics properties [%] 4.2
against prior yr [percentage points] -0.2
Strongest asset class Offices
Strongest asset class [%] 68

Selected top transactions | investment market | Berlin | 1st-3rd quarters of 2019
Project/property
Street no.

 
Sub-market Asset class Buyer/investor Vendor Purchase price*
[approx. €m]
 
„Oberbaum-City”, Rotherstraße Friedrichshain Offices Blackstone Group UniCredit (HVB) 475
„Pressehaus am Alexanderplatz / New Podium“,
Karl-Liebknecht-Straße 27-29
Mitte Offices GEG German Real Estate Group Tishman Speyer 365
„Zoom”,
Joachimsthaler Straße 4
Ku’damm plus side roads Mixed Use Bayerische Versorgungskammer BVK Hines Immobilien 265
„The West Light Berlin”, Budapester Straße 35 Ku’damm plus side roads Offices Generali Deutschland Immobilien Barings 200
„Carrée Seestraße / Osram-Höfe“, Seestraße 64 Peripherie North Offices Cording Real Estate Group Deutsche Real Estate 225
           
„East-Side-Tower“,
Tamara-Danz-Straße 1

 
Friedrichshain Offices Bayerische Versorgungskammer BVK and Allianz Real Estate Edge Technologies confidential
* The purchase prices stated are based on publicly available data, where none is available an estimate is made; new transactions or those occurring in the quarter dealt with in this report are highlighted.
 























The complete market survey will soon be available and can be downloaded from our website.

Press contact

Visitenkarte Xing
Britt Finke


Bleichenbrücke 9
20354 Hamburg

b.finke@grossmann-berger.de

040-350 802 993
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