Investors choose core real estate
In the first nine months of 2020 there were “only” twelve trades with price tags of more than €100m. A year before, 22 transactions had involved such sums.
Offices, the most sought-after asset class, accounted for 57 % of total trading (Q3 2019: 68 %).
Prime yields on offices (2.7 %), commercial buildings (2.8 %) and logistics properties (3.8 %) softened slightly year on year.
Thanks to a good 1st quarter and with several large trades nearing completion, Grossmann & Berger expects the year to close with a transaction volume of some €7bn. This would be well above the ten-year average of €5.5bn, despite the effects of coronavirus on the market.
|Investment market | Berlin | 2020||Q 1-3|
|Transaction volume [€ millions]||4,750|
|against prior yr [%]||-42|
|Share of trading in CBD [%]||9|
|Proportion of international investors [%]||65|
|Prime net yield, office [%]||2.7|
|against prior yr [percentage points]||-0.2|
|Prime net yield, commercial buildings [%]||2.8|
|against prior yr [percentage points]||-0.1|
|Prime net yield, logistics properties [%]||3.8|
|against prior yr [percentage points]||-0.4|
|Strongest asset class||Offices|
|Strongest asset class [%]||57|
|“Chaussee23”, Chausseestrasse 23||Mitte||Offices||Credit Suisse||Barings Real Estate Advisers||220|
|Mitte 1a||Offices||Henderson Park||Caleus Capital Partners for GIC||194|
|Periphery North||Offices||DEKA Immobilien||Townscape One||120|
|Zalando Headquarters, Edith-Kiss-Strasse 1||Friedrichshain||Offices||HIH Real Estate||HIH Projektentwicklung||confidential|
Hallen am Borsigturm,
Am Borsigturm 2-14, 53
|Reinickendorf||Mixed use||ECE Preferred Equity Fund||ECE European Prime Shopping Center Fund||confidential|
Prerower Platz 1
|Periphery East||Retail||ECE Preferred Equity Fund||ECE European Prime Shopping Center Fund||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.|