Barings has sold an 8,415 sqm office building, part of LEO Business Campus, in Stuttgart to Deka Immobilien.
Deka Immobilien has acquired the property for its Domus Megatrends Europa special fund. The purchase price was not disclosed.
The property had been held in a joint venture between the Barings Real Estate European Value-Add Fund I (BREEVA I) and a retained US client of Barings.
The office building, house E, is one of three buildings at the LEO Business Campus, which is located at Löwentorstrasse 46-48 and offers a total GLA of 27,400 sq m. House E was completed in 2019 and received a DGNB Gold certification for its sustainability credentials, which include cycle commute infrastructure and low-emission materials in the interior design. The property also includes a green inner courtyard and 102 parking spaces.
It is fully occupied and leased to GMG Generalmietgesellschaft, the property manager of German telecommunications giant Telekom, and Exyte, a global leader in the design, engineering and delivery of facilities for high-tech industries. The remaining campus buildings are still under construction.
Sascha Becker, Managing Director and Country Head Real Estate, Germany, at Barings, said: “The development of the LEO Business Campus was a rare opportunity in this sought-after location. Stuttgart has the highest concentration of industry in all of Europe and is an important tech hub. The two remaining buildings are expected to reach completion in the first half of 2022 and will make an attractive core investment opportunity.”
The metropolitan region Stuttgart has 5.3 million inhabitants. With €7 billion invested in R&D and 5,000 patents filed each year, it is also one of the most active research hubs in Europe.
The LEO Business Campus is located in the Bad Cannstatt district, directly opposite the Löwentor subway and bus station which link to Stuttgart’s city center and main train station in only a few minutes’ time. The regional train station Nordbahnhof is within walking distance.
Valeria Falcone, Head of Value-Add Investing Europe at Barings, said: “The divestment in Stuttgart is the seventh for BREEVA I and contributes to the value-add fund’s strong performance so far.”
The successor fund BREEVA II recently closed at a hard cap of €850 million after receiving €1 billion of client demand, significantly surpassing the target of €750 million.