Patrizia Immobilien, the Augsburg, Germany-based real estate investment manager, has acquired a portfolio of three office properties in major German cities for a price thought to be around €280 million on behalf of one of its German-focused funds.
The assets are located in Hamburg, Frankfurt and Dortmund and when combined total around 600,000 square feet. The Hamburg property, Hafen City Gate, comprises 262,000 square feet of office space and was built next to the famous Elbphilharmonie concert hall. The other two assets in the portfolio are the Westfalentower in Dortmund, which comprises 288,000 square feet, and the Carl-von-Noorden-Platz, in Frankfurt, which has 56,000 square feet.
The properties are 95 percent let to 36 tenants, with an average lease term of seven years. High-profile tenants include Commerzbank, McKinsey, Deutsche Telekom and Gruner + Jahr.
Patrizia acquired the three assets using capital from its recently-launched Patrizia Gewerbe-Immobilien Deutschland III vehicle. The seller was London-based real estate investment manager Orion Capital Managers, which sold the properties from its Orion European Real Estate Fund IV.
In a statement, Patrizia said the assets all benefit from being located in “popular office submarkets with a balanced tenant mix to produce secure and long-term rental income.
“We are delighted that we were able to achieve this through the selective bidding process and to acquire this very attractive office property portfolio for our customers,” added Daniel Dreyer, head of acquisitions commercial German commercial acquisitions at Patrizia.
Performance details were requested from Patrizia but by press time had not been disclosed.
Orion sold the assets from its fourth fund, Orion European Real Estate Fund IV, which was launched in 2013 and collected €1.3 billion. The fund is the latest in a series of pan-European opportunity funds which are believed to have consistently generated returns in excess of their 15 percent net IRR targets.