Berlin, 17 December 2019 – PGIM Real Estate buys the STREAM office tower in Berlin from SIGNA. The acquisition is part of a forward deal on behalf of German and Swiss institutional investors. The modern office building is currently under construction and will be erected directly at the Mercedes-Benz Arena. With a height of around 90 meters, an above-ground gross floor area of around 50,000 m² and around 2,500 workplaces in the future, the building is an architectural landmark that will shape the cityscape.
The main tenant of the office tower will be Zalando, which became Europe’s leading online fashion platform. Construction began in early 2019. Completion is scheduled for the end of 2021.
Timo Herzberg, CEO of SIGNA Real Estate Germany: “Mediaspree reflects the positive economic development Berlin has enjoyed in recent years like no other district. The location has evolved into an excellent market for office space and is especially popular among companies from the technology, media and telecommunications sector. The STREAM stands out with its striking architecture and an excellent tenant. PGIM is acquiring one of the highlights of the Mediaspree on behalf of its investors.”
Sebastiano Ferrante, Head of Germany and Italy at PGIM Real Estate: “We believe Berlin is an exciting market that offers great potential, especially in the office segment. This is mainly due to continuing tenant demand combined with the low amount of space available. Accordingly, we are delighted that we have been able to make another acquisition for our institutional investors as part of our investment strategy within an extremely short period of time. That this acquisition yields them an attractive increase in value and a constant return going forward is all the more gratifying.”
90-metre-high office building for 2,500 employees
SIGNA is constructing the 90-metre-high STREAM according to plans from the Gewers Pudewill architectural office on a plot at the corner of Tamara-Danz-Straße and Wanda-Kallenbach-Straße. 50,000 square metres of gross floor space will be created above ground on two basement floors and 24 upper floors. About 2,500 Zalando employees will work there after completion.
The ground floor comprises a spacious lobby with an extensive reception and public dining areas. The first floor will accommodate a conference area for up to 600 visitors, ancillary rooms and supply facilities, as well as an internal ‘workout area’. Offices are located on the floors above. In keeping with its surroundings, the building is set back from the seventh floor, then continues to rise upwards in a reduced floor space. The basement floors accommodate an underground car park with some 120 parking spaces (all equipped with electric charging stations) and 250 bicycle stands. Every effort is being made to acquire LEED gold certification and a WiredScore platinum certificate for the building.
Flexible office space for modern workplaces
In each case, two floors interconnect via internal open staircases. Patios can be found in the west and south-west of each office level. The planned office spaces can be used flexibly, offering room for generous working landscapes or the strict division of workstations. Large glazed areas allow spectacular views of the city.
Founded by Austrian entrepreneur René Benko in 1999, the SIGNA Group is a privately owned, investment company focusing on the real estate, retail and media sector.
The company is one of Europe’s leading real estate investors with a portfolio of unique assets in prime locations and counts as one of the largest real estate developers with a development pipeline of EUR 9 billion, which is run out of 10 offices in Austria, Germany, Italy, Switzerland and Luxembourg. SIGNA is one of the dominating investors in the highly attractive property markets of Vienna, Berlin, Munich and Hamburg. In early 2019 SIGNA Group decided to diversify its real estate activities into the US market and acquired the famous Chrysler Building in New York.
About PGIM Real Estate
PGIM, the global investment management business of Prudential Financial, Inc, (NYSE: PRU) is one of the largest real estate investment managers in the world, with more than US$175.9 billion in gross real estate assets under management and administration as of 30 September 2019. Through its PGIM Real Estate and PGIM Real Estate Finance businesses, PGIM leverages a 140 year history of real-estate lending on behalf of institutional and middle market borrowers, a 49 year legacy of investing in commercial real estate on behalf of institutional investors, and the deep local knowledge and expertise of professionals in 31 cities around the world.
PGIM Real Estate, the real estate investment management business of PGIM, has been redefining the real estate investing landscape since 1970. Combining insights into macroeconomic trends and global real estate markets with excellence of execution and risk management, PGIM Real estate’s tenured team offers to its global clients a broad range of real estate equity, debt, and securities investment strategies that span the risk return spectrum and geographies. For more information, visit pgimrealestate.com.
With 16 consecutive years of positive third-party institutional net flows, PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world* with more than US$1.3 trillion in assets under management as of 30 Sept. 2019. With offices in 15 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
*As ranked in Pensions & Investments’ Top Money Managers list, 27 May 2019; based on PFI total worldwide institutional assets under management as of 31 Dec. 2018. Assets under management (AUM) are based on company estimates and are subject to change.
Issued by PGIM Limited. Registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority of the United Kingdom (Firm Reference Number 193418) and duly passported in various jurisdictions in the European Economic Area.