Investment manager KGAL has added a timber-hybrid building to its German office porftfolio.
The €16bn manager has invested an unspecified sum to buy the 5,300sqm PLATINUM building in Wiesbaden developed by OFB.
Construction of the timber-hybrid PLATINUM building concluded in 2023.
KGAL said a long-term rental agreement with Hessen Agentur, a state-owned entity, provides secure, consistent cash flow for the asset.
André Zücker, co-CEO of KGAL, said: “Such ESG lighthouse properties are attractive for tenants and investors now and in the long run, as they set standards in terms of sustainability and do not entail any stranded-asset risk. In addition to the PLATINUM, KGAL is currently examining several other attractive properties.
“Supply and demand in the real estate market are gradually coming back into line and we will actively seize the opportunities that are now opening up for our investors,” Zücker said.
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