Korea’s NPS closes on €570m Sony Center

The $200bn fund has completed its purchase of landmark building, the Sony Center, on Berlin’s famous Potsdamer Platz road, from Morgan Stanley Real Estate Investing.

The National Pension Service of Korea has closed on its purchase of the Sony Center, a large office-led property in Berlin, from a consortium led by Morgan Stanley Real Estate Investing in a deal valued at €570 million.

The purchase of the 135,000 square metre asset is the latest in a European core investment programme  for National Pension Service which has included a number of large investments in London, such as the HSBC Tower in Canary Wharf.

NPS completed the purchase in partnership with Houston-based developer-cum-fund manager Hines. It is a further example of the sovereign wealth fund teaming up with joint venture partners on bespoke investments. In London, NPS has awarded London-based firm Rockspring Property Investment Managers on a separate account basis to source investments.

MSREI sold the asset on behalf of its Morgan Stanley Real Estate Fund VI, a legacy fund which both made the headlines for once representing the largest capital raising for a real estate opportunity fund when it closed on $8 billion in June 2007, and more recently for projecting huge losses because of poor performing assets in Europe and Asia. According to a report by the Wall Street Journal last month, the fund was facing a loss of $5.4 billion at one stage.

You can read more about MSREI and its fund series in the June issue of PERE out next week.