Freo Group has made the first investment for its value-add office fund with the acquisition of Hammerbrookstrasse 92 office property in Hamburg from Real I.S.
Hammerbrookstrasse 92 is in a prime location in Hamburg City-Süd and has a total lettable area of 8,681 sqm and 70 parking spaces. Freo has already identified a number of asset management initiatives to further enhance the value of the property in line with the fund strategy. These include improving the sustainability of the property to achieve green building certification.
Freo’s Pan European Value-Add Fund targets underperforming office properties in submarkets with limited supply in major European smart cities with multi-layered demand drivers, including Paris, Madrid, Barcelona and key cities in Germany.
The fund’s strategy will leverage FREO’s long track record and expert team to convert assets into prime products. It is a closed-end fund that will focus on environmental and social characteristics in accordance with Article 8 of the SFDR.
Matthias Luecker, CEO of Freo Group, said, “Working with institutional capital to find the best value-add real estate opportunities across Europe is part of Freo’s DNA, so we are delighted to be in the market at the right time with this fund.”
“Our first acquisition for the fund was a compelling opportunity to acquire a well-located asset with significant upside potential following a targeted asset management programme to create a prime, ESG-friendly office building. It’s exactly the type of property we want to acquire for the Fund and we look forward to announcing further transactions in the future.”