Cording Real Estate and BNP Paribas Real Estate Investment Management (REIM) Germany have sold the Media Tower property located at Düsseldorf Medienhafen to special fund CONREN Land. The contracting parties have agreed not to disclose the purchase price.
The 18-storey high-rise was originally purchased in 2016 for the Real Value Fund, which BNP Paribas REIM Germany co-manages together with the Cording Real Estate Group.
The Media Tower in Düsseldorf is a 64-meter high-rise encompassing about 9,000 sqm across 18 storeys. Roughly 400 sqm are dedicated to restaurant use on the ground floor with 7,600 sqm of office space on the upper floors. The building also houses about 800 sqm of archive space. The building’s occupants have access to 115 parking spaces located at the neighbouring property. The asset features a flexible layout that can be adjusted to meet specific tenant requirements.
“Based on the IRR method we generated a yield of roughly 18% with this investment over the course of a four-year holding period. This is an excellent example of the potential to be found in the current market environment by taking an active management approach with a competent fund management team”, explains Claus Thomas, CEO of BNP Paribas REIM Germany.
“That is why in the current low-interest environment institutional investors are showing considerable interest in value-add assets with potential to be repositioned as core investments. In light of this we have also decided to increase our equity capital target for the fund to €250 million. We are currently negotiating the purchase of a new property to reinvest the capital made available by the recent sale. Further acquisitions are planned”.
Dentons (legal), BNP Paribas Real Estate (broker) and Arkadis (technology) acted as advisors to the seller.