Union Investment Real Estate has acquired the 18,900sqm Ericus-Contor office building in Germany from Patrizia.
Union Investment, via its open-ended Unilmmo Deutschland real estate fund, has paid an undisclosed amount to buy the asset located at the opening of the HafenCity area of Hamburg.
Constructed in 2012 and almost fully-let, Patrizia acquired the building at Ericusspitze 2–4 in 2014.
Martin J Bruehl, CIO and management board member at Union Investment Real Estate, said: “In the current market phase, transactions around the world have virtually ground to a halt.”
Boasting high construction quality and an excellent location, Ericus-Contor proves that it’s possible for premium properties to change hands despite the coronavirus pandemic and that appropriate pricing is possible, Bruehl said.
“By making this core investment in our home market of Hamburg, we’re delighted to be able to send out a positive signal in terms of transactions in 2020.”
Alejandro Obermeyer, head of investment management DACH at Union Investment, said: “Eastward expansion of HafenCity will mean the property is mid-way between HafenCity and downtown Hamburg.
“The office property also offers potential for attractive rent increases in the medium term due in part to its unique location directly adjacent to the equally iconic Spiegel building.”
Philipp Schaper, head of transactions Europe at Patrizia, said: “This sale of a landmark trophy asset in one of Germany’s leading cities is evidence of the continued demand from buyers looking for quality core real estate assets like Ericus-Contor, even during these challenging times.
“Since acquiring the property in December 2014, the HafenCity district has grown from strength to strength, which has enabled us to crystallise positive returns for our investors.”
To read the digital edition of the latest IPE Real Assets magazine click here.
No comments yet