Germany listed property company DIC Asset AG has signed an agreement to acquire two high-end office properties in Cologne and Stuttgart for a total of €160 million.
“With the two new additions in Cologne and , we have now cleared the half-way mark of this year’s acquisition target of EUR 500-800 million for the Institutional Business. Additional acquisitions still in the pipeline will be closed in the coming weeks. We are pleased with the robustness of the German transactions market, and therefore very confident of our ability to achieve the acquisition target in the course of a dynamic final quarter as planned,” commented Johannes von Mutius, Chief Investment Officer of DIC Asset AG.
Section B of the “LOOK 21” property on Heilbronner Strasse in downtown Stuttgart was acquired on behalf of a special AIF for c. EUR 122 million (TIC). It was sold by USWM-Immobilien GmbH together with its two shareholders, Südwestmetall (the Metal and Electrical Industry Employers’ Association for Baden-Württemberg) and Unternehmensverband Südwest (an independent employers’ association). The micro-location of the multi-tenancy-capable property is defined specifically by its integration in the central Europaviertel locality, and by its excellent transportation access. The new-build property of around 11,200 sqm of lettable area has landmark character because of its modern architecture and is fully let to a high-net-worth tenant from the infrastructure sector. The lease term is 12 years. Stuttgart-based estate agency PH REAL Peter Holtz Real Estate advised the seller exclusively within the framework of the sales process.
The new-build “HangarOne” in Cologne was developed on the historic airport grounds and is now part of the dynamic office market of the Ossendorf district north-west of the inner city. It was acquired for another institutional fund from the Aachen-based developer nesseler projektidee at a cost of c. EUR 38 million (TIC). The five-storey office building will be completed by the fourth quarter of 2020. The property has a lettable area of around 8,500 sqm, and is defined by a high building quality and a competitive fit-out standard. The pre-letting level is 60%, the incoming tenants being high-credit-quality companies from the sectors of special industrial materials, flexible office and IT consulting. The weighted average lease term (WALT) is around 9 years.