Warburg HIH Invest Real Estate has bought an office property in Vienna on behalf of a club deal mandate by four unnamed pension funds and plans to acquire further assets, the manager announced today.
Warburg HIH Invest said it acquired the newly-built HBF 1 office property at Gertrude-Fröhlich-Sandner-Strasse 13 from Rhomberg Bau for an undisclosed sum.
The multi-tenant property has a gross lettable area of 4,200sqm, of which 3,100sqm are used as office accommodation. The building has been let in its entirety except for one remaining unit of 168sqm.
Sebastian Pende, Real Estate Manager at Warburg-HIH Invest Austria, said: “The relatively young office district next to the new central railway station has evolved into a sustainable premium location within a very short period of time.”
“The submarket shows convincingly how tenant preferences have shifted toward extra flexibility and how rather inflexible office accommodation in the historic town centre is successively replaced by modern and efficient units in conveniently accessible locations.”
Matthias Brodesser, the head of transaction management international at Warburg-HIH Invest, said: “Since purchase price multiples and rents in Vienna are both subject to a narrow margin of fluctuation and since we are already in a rather late stage of the current real estate cycle, investments in office real estate in Vienna perfectly complement the core strategies of German superannuation schemes at the moment.
“So, it makes perfect sense for us to keep pursuing an acquisition and growth trajectory in this market.”