Allianz Real Estate, the property investing unit of Europe’s biggest insurer, bought an office building in Berlin for 210 million euros ($240 million) that’s rented to railway company Deutsche Bahn AG.
Stettiner Carree, near the Nordbahnhof train station, was sold by private-equity firm Global Asset Capital, Allianz said in a statement Tuesday. The building has 61,500 square meters (662,000 square feet) of space.
Insurers, pension funds and private-equity firms are buying Berlin offices to profit from increased demand for space by technology companies and government-related employers. Investment in the capital more than doubled to 1.34 billion euros in the first quarter from a year earlier, according to data compiled by broker JLL. That beats all other German cities, including investor favorites Frankfurt and Munich.
“Berlin is a dynamic office market,” Annette Kroeger, Chief Executive Officer of Allianz Real Estate Germany said in the statement.
Allianz increased its exposure to real estate by 600 million euros to 11.9 billion euros in the first quarter, according to a presentation on its website. Property totaled about 2 percent of total invested assets of 664.7 billion euros.
Knight Frank LLP advised Allianz, while Colliers International Group Inc. acted for Global Asset Capital.