Aggregate Holdings S.A.: Transformational acquisition of prime Berlin commercial real-estate project
- Landmark acquisition of mixed-use part-yielding project in central Berlin
- c.183,000 sqm of gross construction area of which majority is office (c.60%)
- Total rental income to amount to c. EUR 50m run-rate at completion
- Targeted Gross Development Value when completed of up to EUR 2.5bn
- Part yielding as over 20% of project is completed and let to tenants
- Project has construction fully-financed through to completion
- Aggregate’s expected rental income from Build & Hold division to almost double to c. EUR 125m at completion of both projects
Luxembourg - 11 June 2021. Aggregate Holdings SA (“Aggregate”), the Germany-focussed real estate company, has acquired the landmark “Fürst” project, located on the Kurfürstendamm in central Berlin (the “Project”).
The project is excellently-located on one of Berlin’s busiest and most prominent streets, benefitting from a prime location as well as a unique footprint as a mixed-use quarter. It has a gross construction area of approximately 183,000 sqm predominantly office and co-working spaces (c.60%), with the remaining area dedicated to leisure, retail and hotel.
The refurbishment and repositioning redevelopment project has a targeted Gross Development Value (“GDV”) when completed of up to EUR 2.5bn, and expected total rental income of c. EUR 50m per annum. The project has full planning permission in place including the necessary building permits and relevant local development plans.
The project is under construction, well advanced and significantly de-risked as over 30% of total capex has been undertaken, over 20% of the project is completed, and the first tenants have moved in and are paying rent. The remaining stages of the project are planned to be completed in phases through to the second-half of 2023.
The project, including acquisition, construction and the majority of the financing costs is fully financed through to completion. The total financing of c. EUR 1.25bn includes a capex reserve account of c. EUR 250m. Aggregate Financial Services GmbH (designated Corestate Bank GmbH and part of Corestate Capital Group) acted as sole global coordinator for the acquisition and development financing and as sole structuring and placement agent. At completion, the total debt related to the project is expected to be around EUR 1.25bn. The purchase price is confidential.
The combination of Quartier Heidestrasse and Fürst results in Aggregate’s Build & Hold division having an expected rental income run-rate of EUR 125m from end 2023 off a combined newly built and refurbished lettable area of c.340,000 sqm in two of Berlin’s most premier locations.
Benjamin Lee, Chief Financial Officer and John Nacos, Chief Investment Officer at Aggregate Holdings, said: “The purchase of this asset provides Aggregate with an unrivalled scale in central Berlin, with two excellently-located mixed-use quarters with a highly-efficient lettable footprint totalling c. 340,000 sqm. The expected combined rental income of around EUR 125m will transform the yielding profile of Aggregate. Despite the challenges of COVID-19, the values of these well-located new-built mixed-use projects in central Berlin remain extremely robust.”
Benjamin Lee, Managing Director and Chief Financial Officer
Tel : +352 20 30 14 60
Mob : +44 7415 121218
Boris Lemke, Investment Director
Tel : +352 20 30 14 60
Mob : +44 7943 025474
Olaf Zapke, Communications
Tel: +49 (0) 69 921874-89
Mob: +49 (0) 170 7641 971
Finsbury Glover Hering
About Aggregate Holdings
Aggregate Holdings SA (“Aggregate”) is a predominantly German-focussed real estate company, with interests also in Portugal. The company had EUR 4.8bn of assets and a project portfolio with a EUR 5.0bn gross development value as at FY 2020. Among some of its assets, Aggregate owns Quartier Heidestrasse, the largest mixed use real estate development project in Central Berlin with c.295,000 sqm of gross construction area, due to be completed by 2023, and to be held long-term as a yielding asset. Aggregate also owns VIC Properties, the largest real estate developer in Portugal, with c.570,000 sqm of gross construction area and €2.5bn gross development value. Additionally, Aggregate holds a long-term 26.6% strategic stake in Adler Group SA, one Europe’s largest residential players, among other investments.