Commerz Real invests EUR 76m in Rotterdam development

Commerz Real has acquired an office development in the heart of the Dutch port city of Rotterdam for EUR 76 mln on behalf of the hausInvest europa open-ended fund. Construction of the 12-storey building began recently and is scheduled for completion in the summer of 2010. The seller was Dutch developer Provast.

Hans-Joachim Kuhl, member of the board of Commerz Real in charge of real estate acquisitions, said that 60% of the building's 23,000 m² was let for periods of at least 10 years before construction work began. 'In face of the decidedly attractive location in the heart of Rotterdam, which shows the highest demand for office space in the entire city, we are very confident that we will manage to market the remaining floor space within the foreseeable future,' he said.

In a statement, Commerz Real said the technical flexibility of the building meant it could be used by a single tenant or partitions could be used to create several rental units. The development is located in the Laurenskwartier of Rotterdam, and is immediately next to Blaak train station. 'With the ongoing construction of new apartments, and of office, retail and gastronomic venues, the area will show a particularly dynamic development in the years to come,' the buyer said.

Commerz Real and other managers of German open-ended funds have been among the most active buyers in the European real estate market this year. In mid-September Commerz Real acquired 180 Great Portland Street, a 9,600-m² office and retail property in London for EUR 100 mln on behalf of hausInvest. A month earlier Commerz Real purchased two office developments at the TownTown urban development project in Eastern Vienna for EUR 98 mln for the fund.

HausInvest europa has an investment volume of EUR 9 bn, making it the largest open-ended real estate fund in Europe.