Deka Immobilien has acquired a further office property in Stuttgart for the new Domus Megatrends Europa special fund for an undisclosed amount.
The property had been held in a joint venture between the Barings Real Estate European Value-Add Fund I (BREEVA I) and a retained US client of Barings.
After purchases in Dublin and Madrid, the property is the third investment for the fund under development.
The five-storey Leo Business Campus Bauteil E office building was completed in 2019. It has more than 8,400 m2 of rentable space as well as 102 parking spaces, and is fully leased to two creditworthy tenants on a long-term basis. The main tenant is GMG Generalmietgesellschaft, a subsidiary of Deutsche Telekom.
The Domus Megatrends Europa special fund focuses on high-value core/core+ properties in the office, retail, logistics and hotel segments.
Sascha Becker, managing director and country head Real Estate, Germany, at Barings, said: ‘The development of the LEO Business Campus was a rare opportunity in this sought-after location. Stuttgart has the highest concentration of industry in all of Europe and is an important tech hub. The two remaining buildings are expected to reach completion in the first half of 2022 and will make an attractive core investment opportunity.’
Valeria Falcone, head of Value-Add Investing Europe at Barings, added: ‘The divestment in Stuttgart is the seventh for BREEVA I and contributes to the value-add fund’s strong performance so far.’
The successor fund BREEVA II recently closed at a hard cap of €850 mln after receiving €1 bn of client demand, significantly surpassing the target of €750 mln. It will continue the same investment strategy as BREEVA I, targeting value-add opportunities across Europe, with a focus on repositioning and build-to-core opportunities in the logistics, alternatives - living and office sectors.
Barings was advised by Colliers, JLL and Ashurst.
