April 20, 2020HENDERSON PARK ACQUIRES 20,000 SQM OF BERLIN OFFICES
London, 20 April 2020 – Henderson Park, the pan-European private equity real estate platform, announces that it has completed the acquisition of four Grade A office properties within the renowned and highly distinct Schützenquartier in Berlin Mitte. The office complex was sold by Caleus Capital Partners, the investment management platform of the Caleus Group ("Caleus"). The transaction represents Henderson Park’s third investment in Germany over the past 12 months, having built a portfolio of more than €500 million AUM in the country. Based on the asset’s prime location and strong tenant base, Henderson Park has secured a competitive senior financing package.
The acquisition comprises four of the Schützenquartier’s 12 buildings, which are all accessed independently and offer 20,337 sqm of predominantly office space along with ground level retail. Built in 1998 on land formerly occupied by the Berlin wall, the distinctive multi-coloured asset was designed by renowned Italian architect Aldo Rossi and is considered to be one of the most important post-reunification developments in Berlin.
A third of the seven-storey properties are let to an occupier related to the German Government, on a newly signed 10 year lease. The remainder of the asset is multi-let to a number of tenants on short leases and includes some current vacancies, presenting an attractive opportunity to capture the property’s rental reversion potential.
While the properties have been acquired in good condition, Henderson Park is planning an active asset management programme to allow it to further capitalise on their in-demand location. This includes investing in consolidating units and improving the buildings’ overall quality and appearance, as well as leasing vacant space.
A number of surrounding properties have also benefitted from recent investment, including the adjacent development of the new global headquarters of the publishing giant Axel Springer (whose previous headquarters are opposite the Schützenquartier and are also scheduled to be fully redeveloped), further strengthening the micro-location’s appeal.
Schützenquartier has a prime location in Berlin Mitte, which is the city’s core central business district and is highly sought after by investors and tenants alike. Local landmarks include the historic Checkpoint Charlie and Gendarmenmarkt square, while the asset is surrounded by an abundance of leisure and dining amenities and public transport connections. Berlin is Europe’s fourth largest office market and is currently characterised by record low vacancies of c.1.6%, further compounded by a limited supply pipeline in CBD locations which supports strong growth prospects.
Nick Weber, Founding Partner of Henderson Park, commented: “While the world currently faces a challenging economic backdrop, we remain firm believers in the long-term strength of the Berlin office market, and this established micro-location in particular. The city has a constrained supply, likely to be exacerbated by COVID-19 delaying new developments, and attracts a diverse and increasingly international occupier base, giving the market an inherent resilience. We believe the current situation will only increase demand for institutional quality, stabilised assets. Schützenquartier adds another landmark European asset to Henderson Park’s portfolio and presents us with a clear opportunity to create value through a programme of refurbishment, re-leasing and re-positioning.”
Stoke Park Capital will be Henderson Park’s local operating partner for ongoing asset management and business plan implementation. Henderson Park was advised on this transaction by Freshfields, EY, TA Europe and CBRE, while the vendor was advised by JLL, BNP as well as Pöllath + Partners.
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|FTI Consulting, for Henderson Park||+44 (0)20 3727 1000|
|Richard Sunderland / Ellie Sweeney|
NOTES TO EDITORS:
About Henderson Park
Henderson Park is a pan-European private equity real estate manager based in London. It has invested circa $10 billion in building a portfolio of real estate assets across Europe, primarily targeting Europe’s gateway and capital cities. It seeks high-quality assets in prime locations where it can identify potential to unlock or create value through asset management, or by taking on and working through complex situations. Henderson Park strives to work with and create long-term strategic relationships with best in class local operating partners. Henderson Park is led by Nick Weber, its Founding Partner and CEO.
Caleus is a partner-owned real estate investment management firm specialising in core to value-add investment strategies. The management commands over a long-standing track record in the industry and more than 10 years of joint team experience as investors and investment managers. Caleus was founded in 2010 by Ulrich Weber and Patrick Reich and has since realised transactions across Germany of c. € 2.0 billion.