CIT Group is paying IVG Immobilien €91 million ($144 million) for nine properties in smaller office locations in Germany.
IVG revealed the sale, saying the assets were too small to be included in its asset owning strategy and were located outside the six main office markets of Berlin, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart.
CIT Group is acquiring the properties through its subsidiary CIT Europe, which it set up in 2004 to source and manage real estate investments on the Continent with a focus on acquiring property fully or substantially let on relatively long leases. Since setting up, CIT Europe has acquired €500 million of German assets.
CIT Group operates a private equity structure, managing real estate funds on behalf of institutional investors. Its CIT Real Estate Limited Partnership raised £211.5 million of equity, while CIT Germany Fund I raised €72. 5 million ($143 million) of capital, according to its website.
Investment partners include Morgan Stanley Real Estate fund, British Airways Pension Fund, Franklin Templeton and General Motors Pension Fund.
The firm’s greatest claim to fame is developing the More London office complex near London Bridge station on the south side of the River Thames where accountant Ernst & Young decided to relocate.
CIT was founded in 1995 by John Barroll Brown.
Former Morgan Stanley Real Estate professional Matt Horgan is managing director of CIT Europe, while Tim Abbots is director of asset management.