[Berlin, ] A unique consortium consisting of a major Bavarian professional pension fund administrator (Bayerische Versorgungskammer), itself representing numerous professional pension funds, as well as Deutsche Hypothekenbank and an investment fund managed by BNP Paribas Reim Germany has taken on the financing of the Berlin property development project “Leipziger Platz Quartier”, branded as “Mall of Berlin”. The ten-year financing commitment amounts to EUR 600 million, making it one of Germany’s largest property financing projects.
The property is held by a joint venture of Arab Investments Ltd. as equity investor and High Gain House Investments, (HGHI) as property development partner. GÖRG advised its long-standing client, Arab Investments Ltd., comprehensively on the property development, which commenced in 2010. The property is sited at Leipziger Platz in Berlin, formerly the site of the famous Wertheim department store and on which a portion of the Berlin Wall was located. The property serves as a natural through-fare and connecting point between Potsdamer Platz and Berlin’s Friedrichstrasse and is prominently located close to Berlin’s iconic Brandenburg Gate.
The financing consortium is Germany’s first property investment group in which a non-banking entity is providing the majority of the financing (Bayerische Versorgungskammer, acting for professional pension funds EUR 450 million). Deutsche Hypothekenbank serves as consortium lead and agent. According to the participants, the transaction is one of Germany’s largest financing transactions involving an institutional investor.
The “Mall of Berlin” itself is presently Europe’s largest inner-city shopping centre project and features about 80,000 square metres of retail space for 270 stores. The property development also includes a 250-bed hotel and a number of private apartments. The development of the project was complex and was required to take into account the historical context of the site, as well as the property’s immediate proximity to highly prominent landmarks, such as Germany’s Federal Senate.
GÖRG has advised London-based Arab Investments comprehensively since 2006 in connection with the acquisition of a variety of existing properties and project development transactions.
Advisors of Arab Investments
GÖRG Partnerschaft von Rechtsanwälten mbB
Dr. Kirsten Schümann-Kleber, LL.M., lead Financing, Partner
Daniel Seibt, lead Real Estate, Partner
Dr. Karla Gubalke, Corporate, Partner
Silvio Sittner, Real Estate, Associated Partner
Thomas Nicht, Dr. Martin Nentwig, both Financing, Associates
Sebastian Hentschke, Tobias Schnieders, Dr. Ulla Reuter, all Real Estate, Associates