In 2020, we acquired a medical center in Berlin-Marzahn situated on a generous plot of land. In addition to optimizing the existing asset, the development potential of the adjacent area, in particular, offered a long-term perspective for project development.

In close coordination with the local district authorities, we initially secured a building permit for a second medical building. To ensure maximum flexibility for future development, the site was legally subdivided in the land register, separating the existing building from the independent new development plot.

This established clear legal and economic structures, allowing for either independent development or a potential future sale.

Market Shifts and Strategic Realignment

The years 2022 to 2024 were defined by changing market conditions: rising interest rates, increased construction costs, inflation, and a shortage of skilled labor in the construction industry. Despite intensive marketing efforts, no buyer for an additional medical building could be secured under these constraints.

Based on market feedback and demand analysis, a strategic realignment was undertaken in 2025: the planned use for the new-build plot was shifted to residential. Given the persistently high demand for housing in Berlin, this represented a market-driven adjustment. After engaging an architect and adapting the permits, the development plot was successfully sold in late summer.

Repositioning and Sale of the Medical Center

Parallel to the development of the plot, the existing asset was consistently enhanced through active asset management.

Restructuring of Lease and Space Profiles

At the time of acquisition, the property was characterized by small-scale leases and a lacks of clear structural organization. In the following years, we restructured the lease and space profiles, extended the anchor lease with a large pediatric practice, and secured a new general practitioner along with other new tenants.

As a result, the medical center was handed over to the buyer fully leased.

Technical and Infrastructural Optimization

In addition to leasing successes, several technical and structural measures were implemented:

• Repair of a defective elevator
• Basement renovation to address moisture issues
• Fit-outs within individual medical units
• Aesthetic upgrades to the stairwell, hallways, and facade

Later, a full conversion to LED lighting and the switch to certified green energy were completed to improve ESG performance. Facility management was also retendered to meet our long-term quality standards.

Financial Result Under Demanding Market Conditions

The sales process proved challenging against the backdrop of market developments in 2023 and 2024. However, through persistent negotiations and endurance, the sale of the medical center was finally notarized in late summer.

Over the five-year holding period, rents were increased by approximately 50 percent while maintaining a stable cash flow. Despite extensive investments in technology and infrastructure and a challenging market environment, a viable and positive result was achieved for all parties involved.

Conclusion: Active Asset Management as a Value Driver

The transaction in Berlin-Marzahn demonstrates how proactive project development, flexible usage adaptation, and consistent asset management can achieve sustainable results even under volatile market conditions – even if it requires a few detours and a few sacrificed vacation days.