"Through this acquisition, Orco emphasizes its long-term commitment to the German capital," Orco Germany CEO Rainer Bormann says in a release hailing parliament's vote yesterday. "Additionally, it is our view that the involvement of Morgan Stanley is a further indication of the attractiveness and future sustainability of the Berlin location." The new owners plan to work pro-actively on lease-up and development opportunities that could yield another 500 million euros worth of new space in "A-1 locations," Bormann says.

GSG properties are mainly in the inner city and close to public transportation. The package is said to be in generally good shape physically and includes a diverse mix of office, flex, industrial and retail space. Among the better-known assets is the Fehrbelliner, a residential project featuring townhouses and penthouses, while another is Haus Cumberland on the Kurfurstendamm, which Orco says could potentially become "the new destination for the western part of Berlin." The site of the former Werthein-Areal on the Leipziger Platz in downtown is seen as a key connecting development between the east and west centers of Berlin, with potential for one million sf of build-out.

The new owners will seek to attract life sciences companies and academic institutions to the portfolio's office and research properties, says Bormann, who announced a commitment by Technische Universitat Berlin to a long-term lease for research and other space that will extend to 2044. The property is known as Technologie- und Innovationspark Berlin, or TIB. "The joint venture has emphasized that it is highly interested in the [university] remaining in the TIB," Bormann says, "and in the near future, further cooperation projects and initiatives are planned."