Redevco, the Amsterdam-based real estate investment manager, has acquired Berlin’s landmark department store Karstadt from a fund managed by London-based investment manager Meyer Bergman.
The department store, which has traded on the site for more than a century, is one of a chain of two in the whole of Germany. It is located on the city’s prime shopping thoroughfare, Wilmerdorferstrasse, in the affluent Charlottenburg district.
The building has 218,000 square feet of lettable space, including 165,000 square feet of retail space. According to Redevco, the asset has a catchment area of more than 640,000 potential customers within a 10-minute drive.
Neither party was willing to disclose the price of the deal at the time of writing.
“Berlin is currently among the most popular retail property investment destinations in Europe,” said Andrew Vaughan, chief executive officer at Redevco.
“Located in the middle of one of the city’s prime shopping streets and in the vicinity of the Wilmersdorfer Arcaden Shopping Centre, this Karstadt flagship store combines high street ‘experience’ and local ‘convenience’ shopping. Redevco will be looking to invest in these type of locations that unite the two main drivers of the modern retail market,” he added,
The property was bought from a fund managed by retail investment fund manager Meyer Bergman. The firm held a final close on behalf of its second vehicle, Meyer Bergman European Retail Partners II, in the third quarter of 2015, after raising a total of €750 million in capital commitments.
The fund’s remaining assets include shopping centres in Northern England and the Czech Republic; high street properties in prime shopping destinations in London, Milan and Oslo; and two substantial redevelopment projects in London’s Bayswater and Borough neighbourhoods, both of which obtained planning consent earlier this year.
Meyer Bergman sold another property occupied by Karstadt, on Berlin’s Hermannplatz, just last month.
Redevco was advised by Savills and Hogan Lovells, while Meyer Bergman was instructed by Simmons & Simmons and PWC.