Berlin Charlottenburg

Location

Located in Salzufer 6, Charlottenburg, Berlin, Germany, population of 3,416,300.

Asset Overview

Triangular shaped building that was formerly owned and occupied by Siemens.
The building comprises three wings constructed in three phases from the turn of the century to the 1970s.
The local area is occupied by high quality car showrooms and mixed quality office buildings.

Key Management Issues at Purchase

Non-recoverable costs and service charge shortfalls.
Obsolete air conditioning system that did not allow for usage metering per tenant.
Lack of clarity regarding settlement of VAT.
Prior owners lack of strategy and widely divergent views of potential of the property.
Lack of car parking spaces constituted a serious impediment to new lettings.
Deutsche Bahn the anchor tenant of the property with impending break options.

Key Statistics

Progress Since Purchase

Solved a multitude of inherited issues including a catch up of vital capital expenditure and settlement of unpaid bills owed to suppliers which could have led to a total “meltdown” in the summer 2009.
Established a close working relationship with the letting agents resulting in three new tenants for a total of 4,555m² and €324,696 of rent.
Reduced the vacancy rate from 45% to 21% between May 2009 and August 2010.
Renewed two leases with existing tenants for 1,692m² and €115,632.
Pacified a prior owner who were contemplating legal action for non payment of service charge reconciliation arrears and secured the reimbursement of the property tax.
Reviewed the marketing strategy for the property in favour of a variety of mixed commercial uses.
Turned the building into a high quality business centre.
Working out recoverability of service charge despite a lack of service charge reconciliations in 2007 and 2008.
Reviewed options to mitigate service charge shortfall to the owner.
Developed a process to ensure VAT reclaims and records are complete and accurate so removing significant risks of VAT inspections and penalties in the future.

Rynda Property Investors LLP is authorised and regulated by the Financial Services Authority.
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Regulated by RICS

The ‘Rynda Group’ has offices in London, Paris, Frankfurt and in The Netherlands. The ‘Rynda Group’ undertakes investment management services via Rynda Property Investors LLP. Rynda Property Investors LLP is authorised and regulated by the Financial Services Authority. Property Management within the Rynda Group is undertaken by Rynda Real Estate Asset Management Limited and its subsidiary entities that are appropriately licensed and insured in France, Germany and The Netherlands to undertake transactions and rent collection.