HIH Invest Real Estate (HIH Invest) has purchased the Milestone 5c office project in downtown Freiburg from the developer Strabag Real Estate.
A six-storey office building with an additional penthouse and a single-storey underground car park is being built on Heinrich-von-Stephan-Straße in the immediate vicinity of Freiburg’s main train station.
The completion is planned for the second quarter of 2023.
The total rental area is 7,711 square meters. The basement includes 64 car parking spaces and technical areas. A two-storey day-care center is being built in parts of the ground floor and upper floor.
The property has a pre-letting rate of 90 percent, of which 65 percent is rented to the public sector – including the state companies Bundesbau Baden-Württemberg and Vermögens und Bau Baden-Württemberg. The other tenants include the German Red Cross.
Daniel Asmus, Team Leader Transaction Management Office Germany, said: “The project development is an attractive investment for our real estate portfolio. The central location in downtown Freiburg, combined with the very good connection to public transport and the walking distance to the main train station, make Heinrich-von-Stephan-Strasse an attractive office location. In the Milestone 5c of the Busiesssmile different office types will be implemented, including individual, combined and group offices, but also spacious open-plan areas. All rooms can be equipped according to individual tenant requirements. The office space therefore offers maximum flexibility and the ability to be used by third parties, and we expect the space that is still available to be let quickly.”
The office building offers employees a high level of comfort and is centrally located, with a very good infrastructural connection to Freiburg’s main train station. It is part of the Businessmile, where Strabag Real Estate is developing an office district with a total rental area of around 47,500 square meters. The district development is located on the well-frequented Heinrich-von-Stephan-Strasse, one of the most important office and service locations in downtown Freiburg. Renowned companies and institutions such as BARMER GEK, Deutsche Rentenversicherung, KPMG GmbH and Commerzbank AG are already based here. Due to its location, the quarter offers excellent transport links to the motorway network, the main train station and public transport.
“We are delighted with the extremely positive response from the entire Businessmile, which is also confirmed by the recent sale to HIH Invest. All seven Milestone office properties developed by us have now been sold and the demand from office tenants could not be better. The central location and the lively mix attract companies. After the most recent leases were signed, only around 500 square meters are still available in the quarter,” says Martin Lauble, division manager at Strabag Real Estate in Freiburg.
“With the acquisition of the DGNB Gold-certified property Milestone 5c, we are implementing the ESG strategy of the special fund. The modern and energy-efficient property offers tenants high-quality, flexibly usable space. The social aspect is also integrated into the investment strategy thanks to the two-storey day-care center with an adjacent outdoor playground,” sayid Oliver Scholtz, Senior Fund Manager at HIH Invest.