BNP Paribas Real Estate Investment Management (BNP Paribas REIM) recently acquired an office complex in Vienna and the Franklinhaus office building in Berlin on behalf of the Next Estate Income Fund III. Both transactions were brokered as off-market deals.
In Berlin, Franklinhaus was completed in autumn 2021 and encompasses roughly 11,500 sqm in total rental area. It is composed of seven floors (GF+6) plus an underground parking offering 62 spaces for cars and 88 spaces for bicycles. The upper levels of the building can house up to four rental units each and offer flexible, customizable offices for new, modern working space. The asset’s landscaped areas, loggias on each floor and rooftop terraces on several floors add to its appeal.
Franklinhaus is certified LEED Gold and is fully let to multiple tenants. The building’s compliance with high environmental standards was critical in deciding to make the purchase.
It is located in Franklinstraße 26 a/b in Berlin’s Charlottenburg district, not far from City West as well as Ernst-Reuter-Platz and Tiergarten. It benefits from an excellent access to the city’s public transport network, the A100 motorway and Berlin’s central station located just a few kilometres away.
The Franklinhaus asset was sold by Consus Real Estate, a subsidiary of the Adler Group. In this transaction, Linklaters acted as legal advisor to the buyer.
“We are happy with this new acquisition which fits perfectly into the NEIF III fund’s strategy and helps strengthen its portfolio by adding a recent, fully-let asset, located in one of the main city in the Eurozone. Thanks to its innovative construction, the asset meets the high expectations involved in today’s working practices and promotes the well-being of those who work there. In addition, the asset is certified LEED Gold and therefore comply with the environmental commitments of BNP Paribas REIM, which aims for greater sustainability for its funds,” comments Dorothea Koestler, Fund Manager at BNP Paribas REIM.
In Vienna, the asset encompasses a five-storey stock building and a six-storey new-build featuring roughly 19,800 sqm in total rental area. The offices are composed of flexible layouts and a landscaped interior courtyard, which offer the perfect spaces for the well-being of the tenants. Both buildings will be certified under Leadership in Energy and Environmental Design (LEED) and are fully let to well-known companies from different sectors.
The asset is located in Pottendorfer Straße 23 – 25 in Wien-Meidling, in the Wienerberg submarket southwest of the city centre. The nearby shopping street features shops offering daily amenities as well as a diverse choice of restaurants. Public transportation is just a few minutes away with excellent connections to the city centre, the airport and the neighbouring districts.
The asset was sold by S+B Gruppe AG and the List Group in a joint venture. In this transaction, CMS Austria acted as legal advisor to the buyer.
“This latest investment adds an exciting location to our Next Estate Income Fund III portfolio. Vienna holds tremendous potential for innovation and is home to countless companies as well as the largest university in the German-speaking countries. All of this makes the city an attractive location for employers and employees alike. These advantages can be seen in the numbers as well with Austria’s capital experiencing an above-average increase in the number of office workers over the past 25 years,” explains Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany. “We think of real estate as living assets that hold benefits for people and the community. That is why we found the asset’s excellent carbon footprint, universal access and balanced tenant mix to be convincing arguments for making the investment. Sustainability criteria like these are becoming increasingly important to our investors, both in terms of environmental criteria as well as social responsibility.”
Next Estate Income Fund III is an open-ended pan European fund managed by BNP Paribas REIM that was launched in 2017, offering diversification in the office sector in the Eurozone countries to international institutional investors and a focus on sustainable development. In 2021, the fund illustrated its commitment by selecting a SFDR 8 classification.
NEIF III reported €759.4m in gross asset value (GAV) as at 31 December 2021. The fund is currently reviewing other assets in the Eurozone’s major cities. Next Estate Income Fund III’s objective is to generate regular, stable income with a net distribution of roughly 4% per year.