Tristan Funds Acquire Berlin’s Mitte City Hall for €29 Million
Source: Tristan Capital Partners Press Release
London, March 24 – CCP III, a fund advised by pan-European real estate investment manager Tristan Capital Partners, has acquired the 13-storey city hall of Berlin’s central Mitte district for €29 million together with its Berlin based operating partner caleus capital investors.
The seller was a closed-end retail investor real estate fund.
Ali Otmar, Managing Director of Tristan Capital Partners said: “This is a single tenant prime office building within walking distance of Berlin’s Alexanderplatz central transport, retail and business hub. There are very few properties in the Mitte district than can provide 20,000 square metres of contiguous office space suitable for local government occupation. This is the third office property Tristan-managed funds acquired in Berlin in the last 12 months (subsequent to EPISO 3’s purchase of two properties in Mitte and Lichtenberg in April 2013). Berlin, with its favourable supply/demand dynamics for well-located office properties, remains one of the more attractive investment locations we want to focus in Germany. The acquisition also fits squarely into the CCP III fund’s core plus investment strategy.”
The building is occupied by Berlin Mitte’s administrative offices and a two-storey pavilion located to the rear houses the district’s council chamber. It sits at the western end of the Karl-Marx-Allee, between Alexanderplatz and Straussberger Platz, and immediately adjacent to the Schillingstrasse metro station.
Berlin’s economy has shown a robust performance in recent years with a remarkable decline in unemployment between 2005 and 2013 from 19% to 11%. Employers recognise the city’s high labour productivity relative to cost and it has the highest rate of net new business registrations in Germany.
Tristan’s CCP III Fund completed a final capital raising close in February 2012 when it raised €420 million.
Berwin Leighton Paisner advised Tristan and caleus.