Hines, the international real estate firm, announced today that it has purchased the Zalando Campus in Berlin on behalf of a Luxembourg-based real estate fund. The property, situated in the Mediaspree office property submarket and still under construction, is to remain part of the fund’s strategic portfolio in the long term. Hines participated in the transaction as the acquisition manager and will handle the long-term asset management for the property.
The Zalando Campus was initially sold last year to L’Etoile Properties and a South Korean fund managed by Capstone Asset Management by way of a forward deal. L’Etoile Properties managed the purchase process and since then has monitored the construction and sale processes for Capstone. The acquisition was structured by way of a share deal.
The Zalando Campus consists of two buildings and offers approximately 42,000 square meters of rental office space across seven floors along with 156 parking spaces. The property has been fully let to Zalando under long-term leases. Zalando, Europe’s leading online platform for fashion, will establish its corporate headquarters at the site.
Dr. Kai-Magnus Schulte, director Hines Immobilien GmbH: “We have had great confidence in Berlin’s excellent long-term prospects and the outstanding qualities and future outlook of Mediaspree for a long time. The Zalando Campus will be among the most advanced and sustainable buildings around, and will occupy one of the last available sites in the vicinity of the Mercedes-Benz Arena. With this purchase, our investor is pursuing a long-term strategy.”
The building offers modern, open floor plans optimally designed to meet Zalando’s evolving space requirements and enabling flexibility and ease of communication. The property will be accessed via an open, welcoming lobby, a two-story auditorium and atrium as high as the building itself. To underscore the sustainability of the Zalando Campus, the project is seeking gold-level certification under the DGNB system.
The cornerstone of the building was laid in September 2016, followed just 15 months later by the topping-out ceremony in January 2018. The project is due for completion in the fourth quarter of 2018. The new building is at a prominent location on a 10,000 square meters site in Valeska-Gert-Strasse in the Berlin office property submarket of Mediaspree. It was designed by the renowned architecture firm HENN.
Hines was advised on the acquisition by BLP Berwin Leighton Paisner and PwC. The seller was advised by Clifford Chance. The off-market transaction was also initiated by Colliers International.