Canadian pension fund OMERS and U.S. private real estate investment firm Madison International Realty are acquiring Berlin’s landmark property Sony Center from Korea’s national pension fund NPS for 1.1 billion euros (US$1.3 billion), the firms said on Monday.
The eight buildings at Berlin’s central square Potsdamer Platz include BahnTower, the headquarters of national railway company Deutsche Bahn AG, as well as office and retail space used by tenants such as Sony, Sanofi, Facebook and WeWork. They also house cinemas and residential units.
NPS had bought the property for US$767 million from Morgan Stanley in 2010.
Ontario Municipal Employees Retirement System (OMERS) will acquire the property through its Oxford Properties unit, which recently invested in Paris’ La Defense district and after the Berlin deal will have 2.3 billion euros in continental European investments. Most of its other assets are located in London.
The acquisition is set to be completed in the fourth quarter.
Reporting by Arno Schuetze; Editing by Ludwig Burger
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Fabrizio Bensch