Alstria Office has agreed to sell an office building in Hamburg for almost €42 mln and to re-invest the proceeds to acquire two office buildings in Düsseldorf for almost €43 mln.
Alstria Office has agreed to sell an office building in Hamburg for almost €42 mln and to re-invest the proceeds to acquire two office buildings in Düsseldorf for almost €43 mln.
The German REIT said Hamburger Strasse 43-49 in Hamburg-Barmbek was sold for €41.7 mln. The building was acquired at the end of 2006 and is fully let to the City of Hamburg. The asset generates a total annual rent of €2.5 mln on a new 10-year lease which was concluded in 2013.
The identity of the buyer was not disclosed.
The proceeds are being re-invested into two buildings in Düsseldorf for almost €43 mln. The assets currently generate an annual rental income of €2.2 mln, offering a higher growth potential.
The first asset is an office building in the CBD of the North Rhine Westphalian capital located in Elisabethstrasse 5-11. The 11,200 m2 asset which has been extensively refurbished in 2010/11, has a vacancy rate of around 31% and generates an annual rent of €1.7 mln.
The second asset is located in Hansaallee 247, representing approx. 6,000 m2 of modern office space with a vacancy rate of around 43% and generates an annual rent of €500,000. While the combined weighted average unexpired lease term (WAULT) of 7.7 years provides a solid cashflow profile the existing vacancy offers significant upside potential.
The two transactions will be closed in the fourth quarter of 2014. alstria was advised by trûon Rechtsanwälte on both transactions while the sale of the Hamburg asset was brokered by CBRE.
