CBRE Global Investors and Universal-Investment have acquired the Stafa Tower, a retail and hotel building in Vienna, on behalf of German institutional investor Bayerische Versorgungskammer (BVK).
The seller was a private limited company. Financial details were not disclosed.
Located in a busy shopping street in the seventh district, the asset comprises 12,600 m2 over 10 storeys with 6,300 m2 of hotel space and three retail units in the remaining 6,300 m2. Major tenants include luxury hotel chain Ruby Hotels, Italian retailer Terranova and national retailers Billa and Betten Reiter.
The building was originally built in 1911 but was fully refurbished in 2015. It was awarded a LEED Platinum certification due to its sustainable design, low energy consumption and exceptionally low operating costs.
This is the eighth investment CBRE Global Investors and Universal-Investment have made for BVK globally in this fund and the first in Austria.
The asset is CBRE Global Investors’ second major acquisition in Austria this year.
'Stafa Tower is a high-quality building that is quickly gaining landmark status due to its contemporary design,' said Harald Flöer, director portfolio management, CBRE Global Investors. 'Its location in Vienna is one that we expect to benefit from further yield compression. The asset has strong stable income from the long-term commitment of recognised retail tenants and houses a successful hotel.'
'Real estate with stable income is still highly demanded by German institutional investors, especially high-quality buildings with an adequate risk-return profile,' commented Alexander Tannenbaum, managing director at Universal-Investment in charge of the Real Estate division.
Universal-Investment doubled its real estate assets under administration to €5.3 bn in the last 12 months.
