German property fund manager Deka Immobilien has acquired the 50,000 m2 Zeppelin Carré mixed-use scheme in the central business district of Stuttgart for its open-ended real estate fund, Deka-ImmobilienGlobal.
German property fund manager Deka Immobilien has acquired the 50,000 m2 Zeppelin Carré mixed-use scheme in the central business district of Stuttgart for its open-ended real estate fund, Deka-ImmobilienGlobal.
The investment volume was not disclosed but it thought to be in excess of €200 mln.
Zeppelin Carré is located across from the main railway station of Stuttgart in the immediate vicinity of the Königstraße shopping area.
The property consists of a square-shaped complex enclosing four architecturally designed inner courtyards. In addition to office use, the building also includes the Steigenberger Graf Zeppelin hotel, a 5-star premium hotel with 155 rooms and suites that was extensively modernised in 2010-11. The property is leased to a number of tenants under long-term leases, including Robert Bosch, Bankhaus Bauer and the City of Stuttgart.
The Stuttgart real estate market is currently experiencing high demand for city centre office space, together with a low level of supply and rising rents, and is characterised by a high degree of stability. The location also has one of the lowest vacancy rates in Germany.
The purchase allows Deka-ImmobilienGlobal to round off its portfolio of properties in large German metropolitan areas and further increase its weighting in hotels. The fund's real estate portfolio includes three other comparable properties in prime city-centre locations: Kranhaus Süd in Cologne, Hafenspitze in Düsseldorf and Quartier Leipziger Platz building complex in Berlin.
