Irish value fashion retailer Primark signed a long-term lease to become the anchor tenant of Zoom, a mixed-use development in Berlin that’s slated to open in 2018.
Developed by global real estate investment firm Hines, Zoom will be in the City West quarter between the zoo railway station and Kurfürstendamm.
Primark will account for nearly half of the project’s 122,700 square feet of retail space. The 69,800-square-foot unit will occupy the basement and first three floors of the building, which will feature a 492-foot-long, three-story glass facade. Zoom’s storefront visibility will boost brand awareness and there are advertising opportunities on the railway side of the project, said Hines, which has $93.2 billion of assets under management.
The company has 105 developments underway around the world and has developed, redeveloped or acquired 1,180 properties, totaling more than 379 million square feet.
“Signing this lease is a confirmation of our development plan,” said Hines managing director Christoph Reschke. “The micro location is experiencing a considerable increase in footfall.”
“This is the largest tenancy agreement signed in the retail sector in Berlin in 2016,” Hines director Joachim Wintzer, adding that Primark will have a positive impact on the further development of City West. “We are already conducting advanced negotiations with other tenants.”
Primark operates more than 290 stores in the U.K., Ireland and Europe. The retailer has three U.S. stores — Downtown Crossing in Boston, King of Prussia mall in Pennsylvania and Danbury Fair mall in Connecticut. Seven more are slated for the U.S., including Kings Plaza in Brooklyn and Richmond Avenue in Staten Island.
Several of the U.S. stores were obtained as a result of the downsizing, right-sizing or closure of Sears units. For example, the Brooklyn store will be part of Macerich’s redevelopment of the 1.1 million-square-foot Kings Plaza, which included a Sears store, at the end of 2012.