Commodus secures over 120,000 sq. m of office space in central Berlin

Commodus, a private-equity investor focusing on value-add investments in the area of office properties, has secured a total of more than 120,000 sq. m of office space in central Berlin with an additional acquisition on the former AEG site close to Brunnenstrasse. In the transaction completed at the end of last year, the investment business acquired the second building section at Gustav-Meyer-Allee 3 with around 60,000 sq. m of rental space, as well as a car park with 1,640 parking spaces. The acquisition was made possible thanks to the majority takeover of the shares of a closed-end mutual fund. The first building section, also with around 60,000 sq. m of rental space, was acquired by Commodus in 2018.

Dr Matthias Mittermeier, founder and managing director of Commodus Real Estate Capital GmbH, comments: “The former AEG site offers us outstanding development potential on a scale that has proven to be unique in the centre of Berlin. Alongside medium-term options such as a contract extension with existing tenants or new tenancies, the 65,000 sq. m plot also offers potential for complete rejuvenation over the long term.”

The office property on Gustav-Meyer-Allee was completed at the end of the 1980s. Over the past few years, institutes of the Technische Universität Berlin, the Fraunhofer Institute, Deutsche Welle, and numerous media and IT companies have established themselves in the neighbourhood. Both building sections on Gustav-Meyer-Allee are fully let and are currently used by the same tenant. The purchase is an add-on acquisition for the 2018 purchase of the first building section.

Philipp Horsthemke, managing director at Commodus, adds: “The ownership structures and the mutual technical/legal dependence of both building sections presented particular challenges for Commodus during the acquisitions. Over the past two years, we have however succeeded in completely overcoming the complexity of the project and thus bringing together both properties under one umbrella in order to increase the respective value of the individual properties for our investors.”

For the most recent transaction, Greenberg Traurig, Wegnerpartner, KPMG, PKF and Drees & Sommer provided advisory support for Commodus.

 

Abstract:

  • Acquisition of the second building section on a former AEG site as an add-on acquisition for a 2018 deal
  • Development prospects for new tenancies, rejuvenation and comprehensive modernisation
  • Joint venture with institutional capital partners