DGAP-News: TLG IMMOBILIEN AG / Key word(s): Acquisition/Real Estate
TLG IMMOBILIEN AG acquires office property with significant letting potential in Berlin
- Total investment volume of around EUR 32.1 m
- Multi-tenant office property with flexible use of space in an excellent micro-location in Berlin-Tegel
- Occupancy rate of around 40% and a weighted average lease term (WALT) of 5.9 years
- Around EUR 2.1 m p.a. currently generated from rental agreements (incl. rent guarantee)
Berlin, 10 August 2016 - Last week TLG IMMOBILIEN AG signed the purchase agreement for an office property at Kapweg 3-5, 13405 Berlin. The company is investing around EUR 32.1 m in the transaction. The property was sold by a private seller and the transaction was brokered by Colliers International.
The modern office property was built in 1997 and features seven floors with a total lettable area of around 18,200 sqm. The space can be partitioned to create single offices or an open-space office. The occupants are currently office users and medical practices. The current occupancy rate is around 40% as the seller initially planned to convert the property and therefore shelved offers to rent out office space. As a result, the property currently generates around EUR 740,000 p.a. from rental agreements. Additionally, the seller has issued an extensive rent guarantee for the existing vacant space for the next two years. There is significant potential to increase rental income through re-letting which can be generated by repositioning the property. The weighted average lease term (WALT) in the property is 5.9 years. The property features an underground car park with 182 parking spaces and enjoys excellent connections to public transport and the A 100 Autobahn.
Situated on the bustling Kurt-Schumacher-Platz, the office is in the heart of a district near to Tegel airport and is in the direct vicinity of "Der Clou" shopping centre.
"This was just one of the reasons why we acquired this property, as there is very little available space on the Berlin office market due to the high level of demand and the letting opportunities will therefore be outstanding. We are certain that we will be able to reduce the vacancy rate of this property quickly and in doing so boost its potential", says Niclas Karoff, member of the Management Board of TLG IMMOBILIEN AG..
About TLG IMMOBILIEN AG
|Company:||TLG IMMOBILIEN AG|
|Phone:||030 - 2470 - 50|
|Fax:||030 - 2470 - 7337|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|