Colonial muscles in on EUR 1 bn Hercules portfolio

Colonial Real Estate has taken a first stake of 4.8% in OCM German Real Estate Holding, the 100% owner of the EUR 1.1 bn Hercules real estate portfolio. Colonial acquired the interest through its subsidiary CRE German Office and it said it plans further acquisitions.

OCM German Real Estate, together with Oaktree Capital Management, acquired the portfolio in October. It comprises 49 office buildings with a rental space of 520,000 m² in Frankfurt, Dusseldorf, Hamburg, Munich, Berlin and Cologne.

The transaction, Colonial said, is part of its strategy to participate on large office portfolio transaction. Its subsidiary, CRE German Office, will participate as co-investor on further acquisitions by OCM German Real Estate in the office sector as well as through contributions in kind.

And, Colonial's estate asset management subsidiary Resolution has signed an exclusive contract as asset manager on the whole portfolio. This increased the assets under Resolution's management to almost Euro 2.5 bn.