REIM Germany acquires Franklinhaus for NEIF III

BNP Paribas REIM acquires Franklinhaus in Berlin for Next Estate Income Fund III

• LEED Gold-certified office new-build acquired in Berlin’s prominent district of Charlottenburg
• Highlighting ESG: Green building added to Next Estate Income Fund III portfolio

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) recently acquired the Franklinhaus asset in Berlin for Next Estate Income Fund III (NEIF III), which was launched in 2017. The deal was brokered off market.  The asset was sold by Consus Real Estate, a subsidiary of the Adler Group.

The multi-tenant property was completed in autumn 2021 and encompasses roughly 11,500 sqm in total rental area across seven floors (GF+6) plus an underground car park featuring 62 parking spaces and room to park 88 bicycles. The upper levels of the building can house up to four rental units each, offering flexible, customizable offices for new, modern working space. The asset’s landscaped areas, loggias on each floor and roof-top terraces on several floors add to its appeal.

The building’s compliance with high environmental standards was critical in deciding to make the purchase. Franklinhaus is certified under the Gold Standard issued by Leadership in Energy and Environmental Design (LEED). “The Franklinhaus building is another top-of-the-line asset to be added to the BNP Paribas Next Estate Income Fund III portfolio. The asset complies with key sustainability criteria and boasts excellent energy efficiency,” explains Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany. “Thanks to its innovative construction, the asset meets the high expectations involved in today’s working practices and promotes the well-being of those who work there. It perfectly matches our definition of real estate as being living assets that hold benefits for people and the community.”

The office property is located in Franklinstraße 26 a/b in Berlin’s Charlottenburg district, not far from City West. Ernst-Reuter-Platz and Tiergarten are in the immediate vicinity as well and offer fast access to the city’s public transport network. The A100 motorway and Berlin’s central station are also just a few kilometres from the asset.

Next Estate Income Fund III is an open-ended pan European fund managed by BNP Paribas REIM, offering diversification in the office sector in the Eurozone countries to international institutional investors and a focus on sustainable development. In 2021, the fund illustrated its commitment by selecting a SFDR 8 classification.

NEIF III reported €759.4m in gross asset value (GAV) as at 31 December 2021. The fund is currently reviewing other assets in the eurozone’s major cities. Next Estate Income Fund III’s objective is to generate regular, stable income with a net distribution of roughly four per cent.

Linklaters acted as legal advisor to the buyer.