CORESTATE has acquired the so-called Tempelhof Twins in Berlin, a first-class value-added office property with a total investment volume of around EUR 86 million. The transaction will be structured as a joint venture between Metropolitan Real Estate, the global real estate multi-manager arm of the Carlyle Group and a fund of the Bluerock Group. Both of these co-investors are new relationships for Corestate.
Frankfurt, October 9, 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading independent investment manager for real estate in Europe, has acquired the so-called Tempelhof Twins in Berlin, a first-class value-added office property with a total investment volume of around EUR 86 million. The transaction will be structured as a joint venture between Metropolitan Real Estate, the global real estate multi-manager arm of the Carlyle Group and a fund of the Bluerock Group. Both of these co-investors are new relationships for Corestate.
The Carlyle Group is a global investment company with USD 223 billion in assets under management. Metropolitan Real Estate invests with and alongside real estate managers since 2002 and has over 225 manager relationships worldwide. Bluerock Group is a real estate investment boutique focused on the acquisition of German office real estate. The value creation potential of the property is to be leveraged as part of CORESTATE’s ‘Manage-to-Core’ strategy. CORESTATE has invested in over EUR 300 million in value-added properties since the beginning of the year.
Lars Schnidrig, Chief Executive Officer of CORESTATE: “With this first-class property, our customers benefit from our long proven “Manage-to-Core strategy”. This is based on our approach of investing for our customers in properties with value creation potential, which we leverage through renovation, repositioning and letting. Returns on these investments that can even be in the double-digit range are thus achievable. Our newly acquired investors can look forward to an attractive asset that meets their high expectations of an office property investment.”
One of the main value drivers of the property located directly on the Teltow Canal in the Tempelhof commercial district is the increase in rental income. Following extensive renovation work, a full occupancy is targeted, with the property already showing a solid cash flow at a current occupancy rate of 80 percent. Given the average rent level still significantly below the market level and that Berlin continues to attract many companies as a core commercial location, a significant increase in rental income is still possible. In addition, the office complex is structurally and functionally in very good condition and interesting to a wide range of tenants.
The office building property located on Komturstraße has a total rentable area of around 22,300 m² with nearly 270 parking spaces. It has a diversified tenant base, is located in the vicinity of well-known companies such as Vodafone, Procter & Gamble and Siemens and has direct access to the A 100 highway.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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