Real estate asset manager AEW has added an 8,600sqm office building to its City Office Germany fund.

The manager said it acquired the office property on Siegburger Straße in Cologne from Loancos Group for an undisclosed sum. 

Sebastian Grobe, the director of acquisitions for AEW in Germany, said: “This office location on the right bank of the Rhine has transformed over recent years and is underpinned by Cologne’s wider fundamentals, such as its continuously decreasing vacancy level of below 4%, which makes it such an attractive market to invest in.”

Built in 2008, the multi-tenant property is almost fully let.

“Due to its accessibility and the quality of the location, we believe that the office market in Deutz has a positive momentum behind it that we are well-placed to capitalise on for this fund,” Grobe said.

The City Office Germany fund targets properties offering value potential in either long-established or developing areas within Germany’s top 7 metropolitan cities.

Lars-Henning Pylla, the fund manager of the AEW City Office Germany fund, said: “Through this acquisition, we have added another German top-tier city to our portfolio and our aim remains on identifying further investment opportunities with asset management potential.”