Germany listed proeprty company DIC Asset has acquired the Mercedes-Benz-Center at Mercedes-Allee 1 in Cologne-West for € 71 million.
The flagship property, located in the technology park in Cologne’s Müngersdorf district, is fully occupied by the blue-chip company Daimler AG. The latter uses the strategically important location as a prestigious show room for its product line-up while also providing a full range of services for the entire Rhineland region from here.
“The acquisition of the Mercedes-Benz-Center represents yet another milestone deal for us. This acquisition for our balance sheet portfolio immediately starts to generate attractive cash flows and positions us within a dynamic environment in western Cologne where we will shape the further development of this area in the years to come, together with the most important local players,” commented Sonja Wärntges, CEO of DIC Asset AG.
The hybrid-use building of four above-ground and two basement levels was constructed for Daimler AG in 2006. It features state-of-the-art exhibition space, office units, conference rooms and gastronomy units as well as workshops. In addition, it provides over 400 parking spots. The lease will expire at the end of 2025 (in 4.7 years) and has two renewal options of 5 years each.
The gross rental yield relative to the purchase price before expenses exceeds 7%.
The building cluster with c. 34,600 sqm is conveniently accessible. The S-Bahn station of the technology park and the proximity of the “Köln-West” motorway interchange (A1/A4) put downtown Cologne within easy reach. The submarket between Cologne’s districts of Ehrenfeld and Braunsfeld has established itself as a technology and automotive business cluster and shows considerable development potential. In fact, a variety of property developments are under way in the immediate vicinity. Moreover, the City of Cologne is looking into ways to turn this district into a living and working area fit for the future, and will create a new urban development plan for it in the years ahead.