Generali Real Estate and Colonial Sfl have set up a joint venture for a portfolio of prime properties in Berlin

Generali Real Estate has launched a new venture in Germany. The company, led by Aldo Mazzocco, has entered into a strategic joint venture with Colonial Sfl (a leading listed European investor) focused on Berlin’s Central Business District, confirming its commitment to consolidating its property portfolio in key European markets. Under the agreement, Colonial Sfl will acquire a 51 per cent stake in the company that owns two super-prime properties in the German capital, whilst Generali Real Estate will retain a 49 per cent stake. The assets in question are LindenCorso, situated along Unter den Linden, and Atrium, on Friedrichstrasse – two mixed-use properties combining executive office space, high-end retail and residential accommodation.

The two properties involved in the transaction, for which CBRE acted as adviser, were part of a fund in which local companies within the Generali Group had invested. The portfolio has a gross value of approximately 300 million euros and comprises a total floor area of around 42,000 square metres. The properties have an occupancy rate of over 90 per cent and a tenant portfolio comprising leading companies.

For Generali Real Estate, this transaction forms part of its active portfolio management strategy, which is geared towards optimising returns and reducing concentration risks, whilst maintaining significant exposure to prime assets in the most important property markets. The partnership with Colonial Sfl – which is thus entering the German market – also aims to strengthen the ability to create value through collaboration with one of Europe’s leading listed property operators.

The completion of the transaction remains subject to obtaining the necessary regulatory approvals. The aim of the joint venture is to capitalise on the opportunities offered by the recovery of the German economy through the repositioning of the properties, with a view to increasing their profitability and market value. ““By sharing the ownership and management of two major core assets in central Berlin, Generali Real Estate is reaffirming its interest in Germany’s major cities, combining our expertise with that of Colonial,” explained Aldo Mazzocco, chief executive officer of Generali Real Estate.”

The Berlin deal comes less than a month after another international acquisition completed by the group. Generali Real Estate Sgr has in fact completed the purchase of the Novotel Tower Bridge London through the Generali Real Estate Umbrella Fund – Hospitality Europe Fund, a sub-fund of the pan-European Luxembourg-based fund specialising in the hospitality sector. With this acquisition, Generali Real Estate’s pan-European hospitality portfolio has reached a value of approximately one billion euros.