The City of Hamburg has clinched a cut-price deal for a centrally located commercial property in Hamburg, previously owned by Austrian real estate group, Signa.
The eight-storey asset at Gerhart-Hauptmann-Platz 50, which comprises over 30,000 m2 of lettable space, was acquired by Signa in December 2020 in a double deal that also included the adjacent Perle Hamburg shopping arcade.
At the time, vendor Hamburg Commercial Bank (HCOB) said that it was moving out of the premises as part of plans to modernise the bank. It agreed a four year sale and leaseback deal with Signa for the asset, with a view to subsequently relocating to Elbtower, a skyscraper planned for Hamburg's Hafencity.
However, according to local reports, HCOB cancelled its proposed move to the troubled Elbtower this January and now intends to stay at Gerhart-Hauptmann-Platz for a few more years.
In the meantime, the City of Hamburg has struck a deal to buy out the bank premises from the Signa insolvency estate for €112.5 mln, according to Thomas Daily, about half what Signa originally paid for the property.
According to reports, Hamburg will eventually provide public services from the asset, including a public library and administrative offices. The Perle Hamburg shopping centre, which forms part of the complex, will continue to operate as a separate commercial entity, with rents collected by the City.
