Avignon Capital, the European property investment firm and asset manager has completed the sale of the Umspannwerk Kreuzberg asset in Berlin to RFR Holding for a purchase price in excess of €70m.

Built in 1926, Umspannwerk Kreuzberg is an 11,500 sqm multi-let, office building located in Berlin’s ‘hipster’ neighborhood of Kreuzberg.

Avignon identified a rare opportunity to acquire this iconic building in 2015, which presented various asset management initiatives, including reconfiguring underutilized space, rebranding and improving the rental tone.

Over the hold period, Avignon has improved the profile of the building providing a strong foundation for rental growth, tenant retention and new lettings. The building has achieved 100% occupancy with a diverse tenant mix including Red Bull Music Studios and Coya.

Patrick Flaton, CEO at Avignon Capital said: “We are pleased to have completed the sale of Umspannwerk Kreuzberg following the conclusion of the 5-year business plan.

Avignon recognized the upside potential in the property as well as the location and our asset management strategy over the hold period has driven the performance and enhanced the building’s presence in the Kreuzberg suburb.

We have exceeded our business plan targets and delighted with the value growth and returns we have delivered to our client.

With low vacancy and strong occupier demand, the Berlin office market remains attractive to us and we hope to invest more over the next year.”

Dr. Alexander Koblischek, authorized signatory of RFR Holding GmbH said: “To buy this unique building and property for RFR has only been a consequent step with regard to our real-estate portfolio in Berlin.”

Avignon was advised by BCLP, Warth & Klein Grant Thornton and RFR was advised by Celexis and Hauck Schuchardt.