Global investor AEW has acquired an office asset in Dresden, Germany on behalf of one of its funds in a joint venture with local partner Catella Asset Management, from a Luxembourg vehicle represented by Optimum Asset Management.
Financial details were not disclosed.
'The Dresden office market is underpinned by attractive fundamentals with a clear lack of supply and limited development pipeline combined with a growing tenant demand,' said Alexander Strassburger, co-head of investments for AEW in Europe.
'Having partnered with local operators Catella Asset Management to implement our asset management plan for the property, we are confident that we can deliver attractive income uplifts and capital value growth on behalf of our investors.'
Located on Blasewitzer Strasse, East of the Dresden city centre, the property was built in 1995 and comprises a total lettable area of around 16,200 m2 over five floors across two connected buildings, as well as 170 basement car parking spaces.
While most of the building is used as offices, there are 10 retail units totaling 936 m2 at ground level. The asset is 95% occupied to 20 tenants.
'The property is located in an area with high potential for value growth. Thanks to our local expertise and our experience in the value-add segment, we will reposition the property for AEW with targeted revitalisation measures,' said Andreas Hauff, Managing director of Catella Asset Management.
AEW was advised by Norton Rose (legal) and CBRE (technical). Financing was provided by Berliner Sparkasse. The purchaser JV was advised by DLA Piper and Dentons. The seller was advised by Cushman & Wakefield.
