The Episo 5 fund, advised by Tristan Capital Partners, has sold the storied commercial property Titania Palast in Berlin. The asset is located in an established retail location on Schloßstraße in the south-west of the capital. The purchaser is a Berlin family office that intends to hold the prominent property in its own portfolio on a long-term basis.
On the vendor side, the transaction was advised by property consultancy JLL, which brokered the sales process. Operational management of the asset for Tristan Capital Partners was handled by KauriCAB Berlin. The building has a long history: it was constructed at the end of the 1920s and stands on a site of around 2,700 square metres. In total, Titania Palast comprises a lettable area of approximately 6,000 square metres.
Fully let commercial building with established anchor tenants
The property features a diversified and fully occupied tenant mix. The largest occupier in the building is a Cineplex cinema. The cinema operation has seven screens and capacity for more than 1,200 visitors, making it a major attraction within the scheme.
Alongside the cinema operation, Titania Palast accommodates other high-profile anchor tenants. These include a newly opened flagship store for the restaurant chain McDonald's as well as an outlet of the Dutch homeware retailer Hema. The local convenience offer is completed by an Aldi supermarket; this branch also carries historical significance, as the discounter once opened its first store in the Berlin municipal area there.
Stable income profile and long-term positioning
From an economic perspective, the building displays a robust profile. The occupancy rate currently stands at 100 per cent. In addition, the average unexpired lease term of the existing contracts is around seven years, offering the new owner visibility regarding future cash flows.
- —Location: Schloßstraße in south-west Berlin
- —Lettable area: around 6,000 m² on a plot of approx. 2,700 m²
- —Tenant structure: Fully let with Cineplex, McDonald's, Hema and Aldi
- —Lease term: average lease term of around seven years
