Alstria Office REIT has agreed the terms of a joint venture with Hamburg-based developer and fund manager Quantum Immobilien to refurbish the Kaisergalerie in Hamburg. The asset is located in one of Hamburg's prime areas called Große Bleichen. Within the framework of the joint venture, Alstria sold a 51% stake to its partner, generating about EUR 13.5 mln of liquidity.

Alstria Office REIT has agreed the terms of a joint venture with Hamburg-based developer and fund manager Quantum Immobilien to refurbish the Kaisergalerie in Hamburg. The asset is located in one of Hamburg's prime areas called Große Bleichen. Within the framework of the joint venture, Alstria sold a 51% stake to its partner, generating about EUR 13.5 mln of liquidity.

'This transaction allows Alstria to crystallize the result of the hard work of our asset managers,' said Olivier Elamine, CEO of Alstria. 'Große Bleichen is one of the most attractive shopping streets in Hamburg. We are very excited with the opportunities that the refurbishment of this asset offers for Alstria and its partners in the long term.'

Alstria said the signing of the joint venture was the result of two years of asset management efforts in relation to the asset located in Große Bleichen 23-27 in Hamburg. Under the plan, the joint venture will refurbish the property after the move of the iconic Hamburg Ohnsorg-Theater to its new location which is in another Alstria building. The joint venture values the property in line with the valuations as of year-end 2008 and 2009.

In 2008 Alstria entered into the first joint venture with the developer Quantum to refurbish the Alte Post building in Hamburg. A binding building permit was granted in 2009 and the refurbishment is to be completed by the end of 2011.