"Through this acquisition, Orco emphasizes its long-termcommitment to the German capital," Orco Germany CEO Rainer Bormannsays in a release hailing parliament's vote yesterday."Additionally, it is our view that the involvement of MorganStanley is a further indication of the attractiveness and futuresustainability of the Berlin location." The new owners plan to workpro-actively on lease-up and development opportunities that couldyield another 500 million euros worth of new space in "A-1locations," Bormann says.

GSG properties are mainly in the inner city and close to publictransportation. The package is said to be in generally good shapephysically and includes a diverse mix of office, flex, industrialand retail space. Among the better-known assets is theFehrbelliner, a residential project featuring townhouses andpenthouses, while another is Haus Cumberland on the Kurfurstendamm,which Orco says could potentially become "the new destination forthe western part of Berlin." The site of the former Werthein-Arealon the Leipziger Platz in downtown is seen as a key connectingdevelopment between the east and west centers of Berlin, withpotential for one million sf of build-out.

The new owners will seek to attract life sciences companies andacademic institutions to the portfolio's office and researchproperties, says Bormann, who announced a commitment by TechnischeUniversitat Berlin to a long-term lease for research and otherspace that will extend to 2044. The property is known asTechnologie- und Innovationspark Berlin, or TIB. "The joint venturehas 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."