Allianz buys prime Berlin office development from Patron Capital

German insurer Allianz has bought a €175m office redevelopment project in Berlin in a forward deal on behalf of several Allianz group companie from private equity investor Patron Capital and its local partner, Berlin-based investment company Suprema. The property is the 40,000 sqm EightFloors project in the Charlottenburg district.

Annette Kroeger, CEO of Allianz Real Estate Germany, said, 'This acquisition is intended to further strengthen our presence in Berlin and enables us to profit from the very dynamic office market there. With high demand on Berlin’s office market, available premises with a central location are few and far between. Rents are therefore rising and vacancies dwindling.'

Having purchased the property in 2015 as a redevelopment opportunity, Patron relaunched it in 2016, adding a glass tower on the corner of Franklinstrasse and Salzufer, a new reception, roof terrace, lounge and entrance areas.

When completed in 2018, the office complex will be fully refurbished and extended. Allianz will apply for a Silver certificate by the DGNB German Sustainable Building Council. To date, the property has already been 83% leased.

'Following the enhancements we have made, EightFloors has successfully attracted tenants by offering high-quality office space in a sought-after location,' said Keith Breslauer, managing partner at Patron Capital.

He added that Germany remained a key market for the company's nearly €1bn fifth fund ("Fund V"), and it planned "significant new capital investment in the market over the next few years."