Outlier transaction boosts total traded in 1st half year
Aggregate Holdings paid Vivion more than €1bn for the “Fürst”, thus ensuring that in the German capital the best-selling class of asset (51 %) was the mixed-use property, dislodging office real estate (35 %) from the top slot in the 1st half of 2021.
Another effect of this outlier trade was that the price category of €100m or over pulled well ahead of all others, accounting for 74 % of the total traded,
Due to the “Fürst” transaction, the relative activity of different buyer groups showed an unusual pattern: in the first half of 2021 fund managers took 57 % of the market, a long way ahead of developers (11 %).
Non-listed property corporations formed the biggest group of sellers (33 %), followed by developers (26 %).
By the end of the 2nd quarter of 2021 the prime yield on office properties had softened by a further 0.05 percentage points to 2.65 %. Prime yields on industrial and logistics real estate slipped appreciably, dropping 0.3 percentage points to 3.5 %. Year on year, only commercial buildings posted an unchanged prime yield of 2.8 %.
At 60 %, the proportion of foreign buyers was comparatively low for Berlin in the 1st half of 2021 (Q2/2020: 74 %).
|Investment market | Berlin | 2021||Q 1-2|
|Transaction volume [€ millions]||4300|
|against prior yr [%]||+24|
|Share of trading in CBD [%]||50|
|Proportion of international investors [%]||60|
|Prime net yield, office [%]||2.65|
|against prior yr [percentage points]||-0.05|
|Prime net yield, commercial buildings [%]||2.80|
|against prior yr [percentage points]||±0.00|
|Prime net yield, logistics properties [%]||3.5|
|against prior yr [percentage points]||-0.3|
|Strongest asset class||Mixed use|
|Strongest asset class [%]||51|
|Ku’damm plus side-roads||Mixed use||Aggregate Holdings||Vivion||> 1,000|
|Mitte 1a||Mixed use||RFR Holding||Bank consortium headed by Credit Suisse||220|
|Landsberger Allee 52||Friedrichshain||Offices||Values||Centrum Grundstücksgesellschaft||200|
|Periphery south||Industry/ commerce||Ivanhoé Cambridge||Commodus Real Estate||confidential|
Warschauer Strasse 70a
|Friedrichshain||Offices||Real I.S. for specialist fund||Patrizia Deutschland||confidential|