Canadian REIT teams up with Kuwaiti firm to buy in Cologne

Canadian REIT Inovalis has agreed to acquire an office property in the German city of Cologne for €22.7 mln.

The asset was acquired on a 50-50 basis with Kuwaiti investment partner, Injazzat Real Estate Development.

Completed in 2015, the property provides 6,090 m2 of leasable area over five storeys and 111 parking spaces. It is fully let through 2025 with no break option.

The acquisition will be financed with a combination of €13.7 mln of senior mortgage debt and equity from both parties for a total of €9 mln.

The transaction is expected to close in the fourth quarter of 2015.

'This property is the tenth acquisition by the REIT since its inception and the fourth completed on a partnership basis. In the context of historically low interest rates in Europe, we continue to see similar investment opportunities in the REIT’s targeted European markets, and we will keep on doing our best to capture them in our Unitholders’ best interest,' said Inovalis CEO David Giraud.

The REIT currently owns an interest in nine office properties in France and Germany, comprising 90,210 m2.