German firms Görg and Noerr have taken the lead roles on the financing and development of Europe’s largest shopping centre in the heart of Berlin.
The €600m (£479m) Mall of Berlin is set to open later this month. The site straddles former East and West Berlin and is close to the iconic Brandenberg Gate.
Noerr advised the consortium of Bayerische Versorgungskammer (BVK), Deutsche Hypothekenbank and BNP Paribas REIM Germany which was funding the project.
GÖRG acted for the developers, a joint venture between High Gain House Investments (HGHI) and London-based family office Arab Investments.
Deutsche Hypo is the consortium leader and agent of the transaction and is providing €80m in funds. BVK is the largest financer, providing €450m, while BNP Paribas REIM credit funds are providing the remaining €70m in financing for a 10year period.
The mall covers 80,000 sq metres and has been under development for a number of years.
Noerr’s team was led by Frankfurt finance partner Andreas Naujoks alongside real estate partners Christoph Brenzinger, Florian Ehrich, Dirk Lentfer, Stefan Weise, Marco Winterer and David Zafra Carollo, tax partner Michaela Engel and regulatory partner Jens Kunz.
The Görg team was led by finance partner Kirsten Schümann-Kleber and real estate partner Daniel Seibt, alongside corporate partner Karla Gubalke and real estate partner Silvio Sittner.
Background to this deal:
Both lead firms are regular advisers to their clients on this transaction. Görg has represented Arab Investments since 2006, advising on this deal since 2010.
Noerr has acted for BVK on a number of similar deals. Naujoks previously advised BVK in connection with a consortium loan to finance the acquisition of the Düsseldorf “Stadttor” by Hannover Leasing and on the refinancing of Tower 185 in Frankfurt by the CA Immo Gruppe.
The Mall of Berlin stands on the site of the Wertheim department store, which was owned by a Jewish family until it was seized by the Nazis in 1937. The building was destroyed in World War II and the Berlin Wall was later built across the site.
HGHI and Arab Investments bought the undeveloped property in 2011 for around €89m from a Luxembourg property group.