Patrizia AG is investing in a historic Berlin building and creating a new business district in a lively area of the city that has strong transport links.
In two separate off-market transactions Patrizia has acquired the Postbanhof building and an adjacent office space for €163 million on behalf of institutional clients from the private equity firm HighBrook Investors.
The group now plans extensive restoration and development work to create a new 12,700 sq m business district across four buildings.
First built in 1907, Postbahnhof is a listed building steeped in history, originally serving as a rail hub for parcel delivery before it was converted into an office and event space in the mid-90s. It consists of two buildings positioned opposite each other, with two smaller buildings located between them.
The site includes around 9,100 sq m of existing high-quality office space, which is occupied by e-commerce businesses Zalando and Kayak. Patrizia is undertaking extensive renovation work on the remainder of the site, which will convert the former event space into an additional 3,600 sq m of offices. Completion of the project, which aims to achieve a high level of BREEAM sustainable certification, is due in 2023.
Helping businesses think creatively
“Postbahnhof is an important piece of Berlin’s heritage and we are privileged to be playing a role in preserving, and transforming this incredible space into a new destination for the city’s businesses,” said Ulf Christiansen, head of acquisitions value add at Patrizia. “Covid-19 has taught us the importance of high-quality office space that helps businesses and individuals think creatively and collaboratively.”
Located in Berlin’s Friedrichshain district, Postbahnhof is situated in a burgeoning office submarket that benefits from excellent public transport links. The Berlin Ostbahnhof main line railway station is a two-minute walk away and connects directly to the main transport hub at Berlin Central Station. The surrounding area is undergoing substantial development, which will further increase the vibrancy and diversity of space and amenities on offer.
“Mediaspree is one of Berlin’s most dynamic submarkets and we expect occupier demand to remain strong,” said Christiansen. “Berlin remains an important market for Patrizia, where we already manage a number of office buildings and developments across the city. Given its stability and affordability against a European backdrop, its position as a worldwide innovation centre and an established hub for major multinational companies, Berlin continues to be an attractive location for institutional capital.”
Colliers assisted in the execution of the transaction.