Hines, acting on behalf of a Luxembourg-based real estate fund, has purchased Zalando Campus in Berlin.
The purchase price was not disclosed; however, it is estimated to be €235 million ($275 million).
The property, situated in the Mediaspree office property submarket is currently under construction and will remain part of the fund’s strategic portfolio in the long term. Hines participated in the transaction as the acquisition manager and will handle the long-term asset management for the property.
The Zalando Campus consists of two buildings and offers approximately 42,000 square meters (452,000 square feet) of rental office space across seven floors along with 156 parking spaces. The property has been fully let to Zalando under long-term leases.
“We have had great confidence in Berlin’s excellent long-term prospects and the outstanding qualities and future outlook of Mediaspree for a long time,” said Dr. Kai-Magnus Schulte, director at Hines. “The Zalando Campus will be among the most advanced and sustainable buildings and will occupy one of the last available sites in the vicinity of the Mercedes-Benz Arena. With this purchase, our investor is pursuing a long-term strategy.”
The high transaction level achieved on the commercial property investment market in Germany held steady in first-half 2018, with an investment volume of roughly €25.3 billion ($29.36 billion), according to CBRE. This signifies a marginal decline of 2 percent in comparison with the previous year, which is, however, no indication of a downtrend.
The German office market was the strongest asset class, totaling 48 percent of transaction volume, especially in the top seven markets, which accounted for 69 percent of office transactions.
