Deutsche Office, a 90.9% subsidiary of German listed office landlord Alstria Office REIT, has sold €116.8 mln of non-core properties in multiple transactions.
The seven assets involved in the sale generate a combined annual rental income of €8.6 mln and were disposed of at a book gain of 3.7% to the most recent appraised value.
They include Deutsche Office's last two assets in the Munich area, three assets in the Nuremberg area, a mixed-use (hotel and office) asset in Heilbronn, as well as a logistics asset near Frankfurt. All the properties are part of the company's €200 mln of non-core assets.
The remaining non-core assets are expected to be sold in the course of 2017. Deutsche Office plans to reinvest the proceeds from the sale in Germany’s major office markets in line with the group’s acquisition criteria.
In a separate transaction, Alstria has acquired an office building in Berlin for €8.4 mln.
'Alstria will remain focused on office properties located in the German main office markets’, said Olivier Elamine, CEO of Alstria Office REIT. 'The concentration on just one asset class and the establishment of sizeable sub-portfolios in Germany’s most attractive markets is the key for Alstria’s efficiency and competitiveness in the German office market.'
