Kintyre, the Frankfurt-based investor and real estate manager, along with joint venture partner Angelo Gordon, is buying the landmark Ring Center 1 shopping centre on the Frankfurter Allee thoroughfare in Berlin’s Friedrichshain district. The seller is Unibail Rodamco Westfield and ECE/the Otto Family.
Not included in the deal are the two adjacent properties Ring Center 2 and 3, which will continue to be managed by shopping centre manager and investor ECE.
Ring Center 1 is located above the intersection of the S-Bahn and U-Bahn on one of Berlin’s principal arterior roads heading eastwards. The 20,000 sqm, five-storey property is anchored by grocer EDEKA, clothes retailer H&M and perfumer Douglas.
Angelo Gordon’s vice-president Marcel Hertig said of the deal, “We believe this is an attractive opportunity for Angelo Gordon to expand its footprint in Germany. The asset benefits from its proximity to one of Berlin’s most trendy neighbourhoods, as it is uniquely located on the eastern edge of the S-Bahn and U-Bahn network in one of the most densely populated and rapidly growing submarkets of Berlin, and we have identified a number of value-add drivers that we intend to unlock in partnership with retail specialist Kintyre.”
Marius Ohlsen of Kintyre said, “Sourcing of deal-flow in this market requires creativity of both the operational partner and investor…Given Kintyre’s experience with urban regeneration, particularly in Berlin, we are excited by the opportunity to deliver on a repositioning of the property that will enhance it and create an integrated shop and office hub that blends modern workplaces with a leisure and retail destination.”
Earlier in the month Kintyre teamed up with Luxembourg-headquarterd Quilvest Capital Partners to buy the ‘Seemaxx’ urban precinct in Radolfzell, Baden-Württemberg, on Lake Constance close to the border with Switzerland. The 35,000 sqm complex, consisting of commercial space, the Seemaxx outlet centre, the Kesselhaus office building, and logistics and warehousing units, was bought from Swiss family office H Sat.
Patrick Laroche, CIO for Europe and Asia (real estate) at Quilvest Capital Partners, said: “We view this property as very attractive, since it offers a mix of day-one, diversified sources of cash-flows, combined with various areas of improvement, notably for the Seemaxx factory outlet centre, located within an affluent catchment area. Thus, it suits well the value-add approach we seek to replicate across several sectors in European markets.”
Kintyre managing partner Adam Pearce added, “As an investment product, Kintyre has a very positive view on well located, urban, mixed-use real estate. This transaction ticks many boxes for us and provides access to a stable but value accretive income stream.”
Kintyre, established in 2009, has recently been beefing up its management capacity in Germany, including its project management team which now manages eight development projects across the country with more than 200,000 sqm. The company’s annual growth in AUM has topped 20% and it has taken on 15 further members of staff this year. The company is a fully independent real estate owner-operator, and manages more than €1.5bn of assets across Germany for domestic and international clients.
