Hines has received strong bids from investors for a €400 mln German office portfolio that the global manager and its client decided to sell during the coronavirus lockdown, PropertyEU has learned.
The portfolio, which is owned by a German pension fund consortium, was brought to the market a few weeks ago. It offers six core office buildings, three in Dusseldorf and three in Berlin. BNP Paribas Real Estate is handling the process.
The timing initially surprised some brokers. ‘We were surprised - it is a big chunk - and we would not have recommended that it came out then’, one agent said. ‘However, it is prime product and the buildings are in good or great locations.’
Since the marketing process started, the German real estate market has been gradually re-opening, with many people able to return to their offices and to carry out visits. Another broker said: ‘This is a deal that we would love to have had because we know it will fly. They have had bids in from German capital, reliable capital which is not dependent on debt.
‘The portfolio is diversified, so a buyer (has options). They could sell one and keep the rest.’
Another large transaction which is progressing, albeit one which went up for sale before the coronavirus lockdown, is DekaBank’s new Frankfurt headquarters.
An international investor is in exclusivity to pay circa €400 mln in a forward funding deal with the building’s developer Lang & Cie Group.
The bank has taken a pre-let on 47,000 m2 on a long lease in the building which is under construction in Frankfurt-Niederrad on a former IBM site in the Lyoner Quarter.
Berlin Hyp, Bayern LB and Deutsche Hypo provided €291 mln of development finance in March. Handover is due in 2022.
