Lisney, together with its German partner Kemper’s, have advised Ballymore Properties on the acquisition of a large retail site in Berlin for €155 million.

The retail site, which is known as the Kudamm-Karree, is situated in Germany’s prime retail district Kurfuerstendamm in the centre of Berlin. This site comprises not only retail and offices, but also some residential accommodation and a theatre. It currently has a lettable area of 63,000sq.m.

Ballymore Properties have plans to spend €450million re-developing this two-hectare site. Mike De Mug, Ballymore’s group retail director, said the site the company has acquired “Is one of the best in Berlin. It is an existing retail arcade with two office towers over it, one of which is a landmark building”. Mr Mulryan, Ballymore’s chairman and chief executive, commented “We plan to further develop and enhance the Kudamm-Karee to make it an appealing destination for Berliners and visitors alike”.

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WHY BERLIN & GERMANY
Population: Circa 3.4 Million
Size: Circa 890 Square Kilometres
Of which 12% Recreation
18% Forest
7% Lakes & Waterways
Remainder Residentail/Commercial

Berlin is

- The most densley populated city of Germany
- After London the 2nd biggest in Europe
- Since 1990 the capital of Germany
- Since 1999 the seat for the parliament
- Central in Germany

Headquarters for large National & International firms such as Sony, Hitchi, Coca Cola, Siemens, Daimler Chrysler, BMW, Schering, Gillette, Samsung……
City with most newspapers in Europe
Media Headquarter for 7 major TV channels in Germany
Music capital with Universal Music, Sony, BMG and MTV
One of the cheapest capital cities for residential/commercial property in Europe

Purchase Transactions:
Unlike in Ireland estate agents fees are paid by the purchaser in Germany. Fees vary from 3 to 6% payable. Between stamp duty, notary and registration fees, auctioneers fees an additional 10% need to be added to all property prices quoted. Notaries in Germnay handle purchase transfers. Schiller & Schiller can recommend vaires Notaries as well as Irish solicitors which are familiar with German law to check all pruchase transactions for a client.

German Banks will finance property bought by non-nationals. On average this can be between 40 to 50% of purchase price depending on property bought. There are tax breaks available on property bought that is classified as a listed building. Otherwise net income from rental is taxable at 20% in Germany.