Germany-listed commercial real estate company DIC Asset AG has acquired a portfolio of three office properties in Cologne from TPG Real Estate for €267 million, on behalf of the so-far largest special fund in the company’s history.
In Cologne’s dynamic district of Ehrenfeld, the three established office properties are located at Josef-Lammerting-Allee 24-34, Eupener Str. 125-133 and Maarweg 149-161. The portfolio, which has around 61,300 sqm of lettable area, are fully let on long-term leases to the German Institute for Federal Real Estate (BImA) and occupied by public-sector tenants.
The portfolio’s weighted average lease term (WALT) equals around 8 years. All of the properties are BREEAM certified as green buildings in use.The properties are defined by their high alternative use potential, their stable long-term cashflows and their conveniently accessed locations.
DIC Asset said the up-and-coming district of Ehrenfeld is considered one of the most sought-after office locations in Cologne, providing very easy access to the inter-regional motorway network, to the local and long-haul service connections of Deutsche Bahn, and to the Cologne-Bonn Airport.
In addition, DIC Asset purchased a new high-end office scheme located at Phoenixseestraße 11 in Dortmund for €19 million, on behalf of the “DIC Office Balance V” special fund.
The core office property with a lettable area of around 3,900 sqm is fully let to two blue-chip tenants from the IT-consultancy sector and the building materials trade, respectively. The WALT is around 10 years. The property has modern building specifications and a flexible floor plan design. It is located in the attractive Phoenix-See submarket in Dortmund, a former industrial area once occupied by ThyssenKrupp AG. The mixed office, services and residential quarter created here is one of Germany’s largest urban development projects of recent years and benefits from a unique selling proposition within the Rhine-Ruhr metro region.
The transactions bring the total value of assets acquired since the start of the year up to c. €1.3 billion, said the company.
“The year 2021 has already been very successful for us. My thanks go to our employees, our ‘dynamic performers’ out in the market. They stand for professionalism and trust. With their expertise and reputation, they ensure that we not only promise success, but also deliver it year after year. And we will close more transactions this year as well,” commented Sonja Wärntges, CEO of DIC.