Oxford Properties and Madison International Realty have acquired the Sony Center in Berlin for €1.1bn (£970m) from NPS Korea.
The acquisition of the 1.2m sq ft landmark mixed-use complex on Potsdamer Platz marks Oxford’s entry into the Berlin market.
The Sony Center comprises 915,000 sq ft of prime office space, 215,000 sq ft of retail and leisure space and 67 residential units across eight individual buildings, including the iconic Bahn Tower.
Major office occupiers include Deutsche Bahn, Facebook, Sanofi, Sony, the State of Berlin and WeWork, while retail occupiers include LegoLand, IMAX and Cinestar.
Following the recently announced €500m acquisition of Window in La Defense, Paris, this first transaction in Berlin brings Oxford’s Continental European assets under management (AUM) to approximately €2.3bn, representing 40% of Oxford’s total UK & European AUM.
Oxford’s existing Paris portfolio comprises 1.2m sq ft of space across four properties.
Paul Brundage, executive vice president and senior managing director, Europe at Oxford Properties said: “This acquisition is a meaningful step toward achieving our stated strategy of reaching circa $5bn of assets under management in Continental Europe by 2020, focusing on Berlin and Paris.
“This strategy is backed up by our longstanding commitment to the Central London office, high street retail and build-to-rent residential sectors. This acquisition gives Oxford the scale to build a platform in Berlin with an ‘on-the-ground’ team.”
Ronald M Dickerman, president and founder of Madison added: “Our strategic relationship with Oxford formed around prime assets in Paternoster Square, London has now grown to include the iconic Sony Center in Berlin. We share a commitment to investing in world class properties alongside world class real estate professionals which is the embodiment of this transaction.”
The acquisition will complete in Q4 2017. CBRE and Greenberg Traurig advised Oxford and Madison; in addition, Freshfields Bruckhaus Deringer represented Madison. Hines advised NPS Korea.
27 September 2017
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