CA Immo has sold its latest development project, the planned cube office building adjacent to Berlin’s main station, to a large institutional funds manager. The 18,500 sqm standalone building being constructed in a prominent location in the Europacity district, right between Berlin’s main station and the Chancellery building, will be built and let on behalf of the investor by CA Immo. An agreement was made not to disclose the purchase price, which corresponds to the currently attractive market environment. The total investment (including the value of the plot) of CA Immo will be approximately €100 m.
According to Frank Nickel, CEO of CA Immo, “The Europacity quarter, which is developed by CA Immo, is now an established office district under strong demand from tenants. Moreover, Berlin is booming and the supply of modern office space has become extremely tight. The successful sale of our office project cube, which we are constructing on an absolutely prime site in Berlin, will make a significant contribution to earnings and give us the economic scope to realise other development projects for our own portfolio at the same location.”
Start of construction of cube, a standalone building spanning some 18,500 sqm on Washingtonplatz next to the city’s main rail station, is scheduled for January 2017; it will be completed in 2019. The structure designed by renowned Danish architects 3XN is located by the bend in the River Spree, opposite the Federal Chancellery. It stands next to the John F. Kennedy Haus and the InterCityHotel Berlin Hauptbahnhof, two other buildings developed by CA Immo for the company’s portfolio.
Other office developments currently being prepared or implemented include the new KPMG headquarters; CA Immo also holds valuable land reserves within Europacity which will enable office developments with an approximate value of € 600 m (after completion).