German pension fund BVK has bought the Dieterich Karree complex in Dusseldorf’s downtown Pempelfort district from Tristan Capital Partners for €70.5 mln.

German pension fund BVK has bought the Dieterich Karree complex in Dusseldorf’s downtown Pempelfort district from Tristan Capital Partners for €70.5 mln.

The mixed resi/retail site was sold by Tristan Capital's CCPIII fund in a deal reflecting an initial yield of 5.2%.

‘This deal had a particularly complex and interesting history as it was owned by well-known German real estate investor Ignatz Bubis before passing to the lenders on the properties after his death in 1999,’ said Ben Newman, managing director of portfolio/asset management at Tristan Capital. ‘The legal complexities and the subsequent lack of investment signalled to us that it had a number of the key broken facets that Tristan prides itself on fixing.’

Tristan bought the complex together with German asset manager Pamera in 2011 in the belief that the German residential and retail markets were 'set for a strong run'. The London-based investment firm says that in exiting the property, it has 'comfortably exceeded' its return target for the CCPIII Fund.

The Dieterich Karree complex has 18,300 m2 of residential units and 11,300 m2 of retail space. It is 95% occupied.

Tristan was advised on the transaction by Clifford Chance and Colliers.