The Carlyle Group, the global private equity firm, has acquired a site in Dusseldorf, Germany, from DEKA ImmobilienFonds, an open-ended fund owned by DEKA Bank.
Despite fears in Germany that the country could plunge into recession, Carlyle plans on demolishing Cecilienallee 6-9 when tenancies expire in August 2009 and then constructing a new modern office building in its place with roughly 14,000 square meters of space.
Wulf Meinel, managing director, said in a statement that the region of Dusseldorf was one of the economically strongest and most stable in Germany. He added: “This investment is totally in line with our strategy of identifying attractive properties with significant upside potential from demolishing existing outdated buildings and developing modern, state-of-the-art premises in strong local markets.”
Carlyle closed its third European fund in June, Europe Real Estate Partners III, on €2.2 billion ($3.4 billion).
In an interview published in this month’s PERE magazine, Carlyle European real estate head Eric Sasson says the firm will not be ditching its traditional strategy of working with well located single assets. He adds the firm is looking further east and south in Europe, and expects to eventually open offices from Moscow to Turkey.