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US asset management giant Brookfield Property Partners has completed the acquisition of the Potsdamer Platz portfolio in Berlin for more than €1.3 bn.

Brookfield, acting in a joint venture with an Asian sovereign wealth fund believed to be the state-owned Korea Investment Corporation, purchased the 17-asset portfolio from Savills Fund Management (formerly SEB Asset Management). Financial details were not disclosed. However, the deal is understood to amount to over €1.4 bn.

SEB Asset Management hired Eastdil Secured earlier in 2015 to market its flagship Potsdamer Platz holdings in Berlin for around €1.5 bn. SEB AM was taken over by Savills Investment Management in March 2015 and was rebranded as Savills Fund Management Gmbh.

Potsdamer Platz, designed by architects including Renzo Piano and Richard Rogers, opened in 1998 and has over 267,000 m2 of restaurants, offices, apartments and shops. Potsdamer Platz 1, designed by Berlin-based architect Hans Kollhoff, is one of the quarter's landmarks with a height of 103 metres

The holdings, which are owned by SEB's Immoinvest open-ended fund in liquidation, involve 17 buildings including the Mandala Hotel, a Cinemaxx cinema, the Stage Theater and the Arkaden mall, as well as 2,000 parking spaces. The buildings are a mix of office (267,000 m2), retail (45,800 m2), residential (45,800 m2), leisure (41,400 m2), and a hotel (12,800 m2).

Ric Clark, chairman of Brookfield Property Partners, commented: 'Potsdamer Platz is one of the world’s iconic properties, and we are pleased to be adding it to Brookfield’s growing portfolio of world-class assets.'

James Tuckey, chairman of Brookfield Properties Europe, has relocated to Berlin where he is heading Brookfield’s Berlin office. He commented: 'Berlin represents a fantastic opportunity for Brookfield. I look forward to working with our management teams to further our plans for Potsdamer Platz and harness the opportunity that we are seeing in the German market.'

Daimler exit
SEB AM bought the portfolio back in 2008 from German car maker Daimler for €1.5 bn. Daimler vacated part of the asset in late 2012 and the portfolio is 20% vacant at present. Most vacancies are in the office building at Eichenhornstr. 3, which is currently being repositioned.

SEB AM tried to sell a 50% stake in 2011 to meet withdrawal requests from ImmoInvest shareholders but the assets failed to raise enough interest. In 2013, the asset manager sold the Hyatt hotel from the Potsdamer Platz portfolio to Qatar’s Al Rayyan Tourism and Investment for over €100 mln.