AEW has acquired the Siebenburgen office complex in Cologne, Germany, from Commerz Real’s open-ended real estate fund, Hausinvest. The purchase price was not disclosed.
The acquisition has been completed on behalf of a separate account mandate for a pension fund, which targets long-term core investments in Germany.
Siebenburgen, which was built in 1995 and 1997 respectively, is located in Cologne’s city centre at Vor den Siebenburgen 2 and Paulstr. 3-7. The asset comprises a total of 9,600 sq m of which 91% is let, with an average remaining lease term of over 12 years. The Max Planck Institute, the leading research organization in Germany, which is funded by the state, occupies 46% of the building with a lease that extends until 2040.
Tobias Schnurer, Director Investment at AEW, commented: “The acquisition of the Siebenburgen office complex reflects our confidence in the outlook for the office market in Cologne. The long-term lease agreement with the Max Planck Institute and the diversified occupier mix, as well as the opportunity for further value-enhancing asset management activities present an attractive risk-return profile for this mandate.”