BPT Hansa sets up German HQ for Wartsila

Danish investor Baltic Property Trust (BPT) and German property company bauwo Grundstucks have agreed to develop an extension to the headquarters of Wartsila Deutschland. The German company is part of the listed Finnish Wartsila Corporation, which focuses on the marine and energy markets.

The workshop and office building has a total space of some 5,000m² and completion is due in May 2009. Wartsila has also signed a fixed 20-year leasing agreement. The deal has a net starting yield of 6.1% versus net yields below 6.0% in similar parts of the Hamburg market.

The German fund BPT Hansa Lux purchased the site, which is located next to the fast-expanding Spreehafen area in Hamburg, in a sale-and leaseback deal from the Freie and Hansestadt Hamburg.

Andrea Jost, fund manager of BPT Hansa Lux, commented, 'There is a dynamic development of the location. There is also a very good potential in the property itself. Compared to other properties we will set up a very high quality building of flexible use also for other tenants.'

The acquisition marks BPT's entry into the complex Hamburg market. The Danish company said it is looking for further attractive investments and developments in Hamburg.