Avelios Second Project Closed – Seydelstraße 14, Berlin
Avelios is delighted to have worked with a European real estate developer to facilitate mezzanine finance for their inner city office development in Seydelstraße 14, Berlin, Germany.
The developer had secured a €17m senior bank loan, but still required a mezzanine tranche of €7m to complete the transaction.
Despite the fairly challenging financing climate created by the Covid 19 crisis, Avelios was able to introduce the developer to a suitable mezzanine finance provider, ensuring the transaction could continue as planned.
Guido Lang, Chief Investment Officer for Avelios said: “We were delighted to work with a well-established real estate developer on this transaction. With our insights on the Berlin market, we were able to see the long-term potential of this site and introduce a financing partner to participate in the project.”
The development site is located in Seydelstraße, within the sought-after Mitte district of Central Berlin. It enjoys excellent connections to local public transport lines (subway line U2 and bus route 248) and is easily accessed from both of Berlin’s airports (both within 30 minutes travel time)
The property is also in the immediate vicinity of the Spittelmarkt, the Axel Springer headquarters, the Gendarmenmarkt, and the Humboldtforum, featuring the new building of the Berlin Palace and the Museum Island.
The site is on a 1100 m² plot and the development will create a new, architecturally prominent office building with 3070 m² GFA and 2,690m² of rentable space, generating target income of €1.07m p.a. (€32psm, plus income from 20 parking spaces). Construction is due for completion in Q2 2023.