Berlin’s Tacheles Landmark Ruins for Sale for $269 Million

German real estate investor Anno August Jagdfeld plans to sell Berlin’s Tacheles building, a former department store that was occupied by squatters until last year, according to a sales prospectus obtained by Bloomberg.

Jagdfeld, whose fund-management company owns the landmark Adlon Kempinski Hotel at the Brandenburg Gate, is seeking 200 million euros ($269 million) for the vacant building and the 22,180 square-meter (238,700 square feet) of land that surrounds it, according to the prospectus.

Jagdfeld would use the proceeds to pay off debt to HSH Nordbank AG, which financed his 1998 acquisition of the property and put it into administration in 2008, two people with knowledge of the matter said. They asked not to be named because the sale is private.

Christian Ploeger, a spokesman for Jagdfeld, declined to comment on a possible sale. A spokesman at HSH Nordbank declined to comment.

The sale would help speed up the gentrification of Berlin’s central Mitte district, where luxury boutiques and modern condominiums have replaced rundown squats and abandoned land. A former post office building on the same street is due to be converted into apartments.

Graffiti, Posters

With its facade covered in graffiti, posters and soot, Tacheles stands out on a street lined with renovated prewar buildings and new developments. Tacheles, situated in what used to be communist East Berlin, was taken over by artists in 1990, when Germany was reunified. The building had been slated for demolition.

During the squat, Tacheles had become an attraction for tourists who came to see sculptures made of scrap metal and other art works. The last remaining squatters were evicted last year.

Homes prices in Mitte, Berlin’s most expensive district, have gained 11 percent in the past three years, according to data compiled by online broker Immobilien Scout 24.

Jagdfeld has invested in other German landmarks. He owned the Grand Hotel Heiligendamm on the Baltic Sea that was used for a Group of Eight summit in 2007 before it became insolvent in 2012. Jagdfeld owns the Quartier 206 shopping mall on Berlin’s Friedrichstrasse that’s been put into administration by Credit Suisse Group AG.

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