POBA takes €221m bite of Dream German offices

The South Korean pension fund for government officials adds German offices to property holdings in the UK, China and Brazil.

POBA, the South Korean pension fund for government officials with 235,000 members, has struck a deal to gain a 50 percent interest in seven office properties in Germany for €221 million, adding to its global portfolio of assets in the UK, China and Brazil.

The expansionary investor has structured the transaction as a joint venture with Dream Global REIT, which is a Canadian open-ended real estate investment trust for investors wanting property outside Canada and which owns 15.7 million square feet of office, industrial, and mixed use assets in Germany.

Though yet to formerly close on the transaction, the parties to deal said it would involve ABC Bogen in Hamburg, Lowenkontor in Berlin, Werfthaus and K26 in Frankfurt, Double U in Dusseldorf, Z-Up in Stuttgart and Marsstrasse 20-22 in Munich.

Eunghan Park, executive managing director of POBA, said the JV allowed it to expand into one of the most highly sought after real estate markets in the world.

Dream Global REIT has taken less than three years to assemble its Germany portfolio, and there is scope to add more assets to the joint venture according to Michael Cooper, vice chair of the board at Dream.

It is going to reinvest proceeds of the sale. He said: “The opportunities in Germany are plentiful and strategic partners like POBA will help us grow in Germany and potentially elsewhere when we identify appropriate opportunities.”

Just a few days ago, Dream acquired Officium, a 268,000 square foot office property in Stuttgart for €46.9 million at a cap rate of 6.6 percent.