UK-based Arab Investments has acquired the Lankwitzer Strasse Shopping and Service Centre in Berlin and the Fiat Headquarters building in Frankfurt for a total of over EUR 72 mln.
UK-based Arab Investments has acquired the Lankwitzer Strasse Shopping and Service Centre in Berlin and the Fiat Headquarters building in Frankfurt for a total of over EUR 72 mln.
The Shariah-compliant fund bought the Lankwitzer Shopping Center from Ratus for EUR 36.4 mln, reflecting a net initial yield of 6.07%. The three-storey centre comprises a lettable area of 12,300 m2 and its anchors, including Kaisers, Aldi and C&A contribute to a total annual rental income of over EUR 2.46 mln.
The Fiat Headquarters building in central Frankfurt was acquired from LHI for EUR 36 mln, and this second transaction reflects a net initial yield of 5.99%. The ultra-modern development is due for practical completion early in 2008 and is pre-let to Fiat on a ten-year lease at an annual rent of EUR 2.25 mln as their regional headquarters. The 12,900 m2 site comprises two office buildings, one of two storeys and another of six.
The acquisitions follow Arab Investments' purchase of 12 German retail and office properties for EUR 300 mln back in March. The investment company, which was advised by Savills on all these transactions, is the only fund trading in Germany to offer its clients access to Shariah-compliant financial investments. A further EUR 410 mln is said to be currently under offer.
