AEW has acquired Paulinenstraße 50, an office building in Stuttgart, Germany, on behalf of AEW Europe Value Investors II (EVI II).
Financial details were not disclosed.
The seven-storey building has 6,500 m2 of lettable space and 78 parking spaces and is 100% leased to state university Duale Hochschule Baden-Wuerttemberg, which is AAA rated. Located in Stuttgart’s CBD on the City Ring, the asset is close to the city centre.
Carsten Czarnetzki, fund manager of EVI II at AEW, commented: 'This acquisition is perfectly in line with the investment strategy of the Fund, whose focus is to target opportunities in liquid European markets which offer value creation through active asset management.
'As the third largest population area in Germany and with strong economic fundamentals, Stuttgart is an attractive market for the fund.'
The transaction is the fund’s first in Stuttgart and the third in Germany, following the acquisition of the Baseler Palais in Frankfurt and the Accor Building in Munich, and increases EVI II’s assets under management to over €250 mln with eleven assets in the portfolio.
Tobias Schnurer, investment director at AEW, added: 'The acquisition of Paulinenstrasse offers our investors a long-term secured lease contract with excellent creditworthiness and further value creation potential through medium-term asset management activities.'
AEW was advised by Rotthege Wassermann, TA Europe, Nova-Ambiente, Fahlbusch and Immoraum. E&G Real Estate, a member of German Property Partners, managed the transaction exclusively for the seller.
