AEW makes core German buy

Paris-based AEW Europe has acquired a Frankfurt office for nearly €40 million for its Euroffice Fund

AEW Europe has bought an office in Frankfurt for its core Euroffice Fund, it said today.

Rob Reiskin, AEW Europe’s head of investments said in a statement: “We believe now is the right time to be moving back into some parts of the Continental European core office market, to benefit from
the economic recovery.”

AEW has paid Australia’s Macquarie Office Trust €39.5 million ($54 million)  for the 14,000 square foot building in Damstadter Landsträsse. The purchase represents an acquisition yield of 6.6 percent.

The office is fully leased, with a weighted average unexpired lease length of 7.5 years.

The Euroffice Fund raised €350 million with 60 percent leverage in 2006 for AEW’s pan-European office
strategy. After the Frankfurt deal the fund is roughly 65 percent invested. Investments in Germany account for approximately half of the portfolio.