Bayerische Versorgungskammer (BVK), Germany’s largest pension fund, has acquired a former telecommunications office in Hamburg through Values Real Estate.

Values Real Estate said the office in Schlüterstrasse 51-53 in the Hamburg-Rotherbaum district was acquired from Peakside Capital Advisors.

The building complex was part of the Peakside Real Estate Funds II and III funds and is currently being refurbished and expanded by Peakside.

Values Real Estate is acting as investment manager in the transaction for a BVK investment fund administered by Universal Investment.

The listed 65,000sqm building is leased to the City of Hamburg for a 30-year term.

Norman Fackelmann, the head of real Estate at BVK, said: “The long-term lease contract with the public tenant as well as the planned ESG measures are an excellent fit with BVK’s current investment approach.

“We are convinced that the asset will generate stable and secure rental income for our investors.”

Carsten Fischer, managing partner at Values Real Estate, said: “The University of Hamburg’s Humanities Research Center at this central location is an important milestone in the future development of Germany’s second-largest city as an education and science hub.

“It is a forward-looking investment into the Hanseatic city’s public services. For BVK, this investment offers long-term, secure distribution yields. And we are looking forward to working together with our partner Peakside.”

Boris Schran, managing partner at Peakside Capital Advisors, said: “The former telecommunications office is a flagship project of our manage-to-green strategy. We are preserving as much as possible of the old building fabric and are raising the property to state-of-the-art standards in terms of energy efficiency and interior design.

“At the same time, we are activating new space by developing the attic stories and adding basements and roofing. We look forward to working together with our partners, including the tenants from the education and science sectors, as we continue to service the building.”

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