Sean Mulryan's Ballymore Properties has bought a 93,000sq m commercial property in central Berlin for €155 million.
The company announced yesterday that it has bought the Kudamm Karee, a mixed-used development on Kurfürstendamm in the centre of Berlin.
The property is 93,000sq m and is located on the German capital's busiest shopping street.
The shopping centre, with a 20-storey office block in the back, has had a difficult history since it opened its doors in 1975. Remodelled twice in the 1980s in an attempt to attract more customers, the city state of Berlin sold it to a private investor in 1990.
He tried his luck but then sold it in 2002 to a property subsidiary of Deutsche Bank (DB) for a reported €200 million. The company failed to turn around the loss-making centre and, after losing several high-profile tenants, remodelled the centre.
Last December, DB offloaded nearly all of its property for a reported €2.1 billion, including the Karee.
Ballymore has bought the property from a Virginia, US-based real estate investment fund, Fortress Capital.
The Kudamm Karee site includes shops, offices, restaurants, a theatre and car parking. Ballymore plans to refurbish and redevelop the properties.
Commenting on the deal yesterday, Mr Mulryan, Ballymore's chairman and chief executive, said that the property's location was "stunning". "We plan to further develop and enhance the Kudamm Karee to make it an appealing destination for Berliners and visitors alike," he said.
The most complicated tenants will be the two landmark theatres incorporated into the building. Moves last year to close the popular theatres, the Komödie and Theater am Kurfürstendamm, lead to huge protests. Ballymore can expect further, emotional protests when the rental contracts for the theatres expire next year.
Berlin has a population of 3.4 million and its economy generates wealth at the rate of around €80 million a year. It is the third most visited city in Europe after London and Paris.
Mr Mulryan founded Ballymore Properties, which is run from offices in Dublin and London. The company has interests in Ireland, Britain and across Europe.
