AEW has acquired a 22,000sqm office property in Germany for a separate account mandate.
The real estate manager, on behalf of an institutional German investor, bought the multi-let Trinity office building in Cologne’s Zollstock district from a Luxembourg special fund.
AEW did not disclose the name of the German investor but said it has managed the account since 2017 and aims to implement an active core to core plus strategy across Europe.
Constructed in 1994, the Trinity building is currently 90% let to a variety of tenants.
Matthieu Samaran, director of investment at AEW, said: “The Cologne office market has developed very positively in the recent years and is highly resilient, benefiting from the city’s dynamic and well-diversified economy.
“The property offers a long-term, secure rental income with attractive reversionary potential. The future development of the Parkstadt Süd will also significantly improve the attractiveness of this micro-location over the medium-term.”
Lars-Henning Pylla, separate account fund manager at AEW, said: “Cologne can still be considered as one of Germany’s relatively underrated investment spots with future growth potential thanks to high demand and larger-scale development projects covering entire districts.
“As Cologne’s office vacancy recently dropped below the 3%-mark, we expect to benefit from actively decreasing the property’s under-rented position.”