DFH fund buys Stuttgart offices for EUR 48m

Germany's Deutsche Fonds Holding (DFH) has acquired a portfolio consisting of three office properties and a residential building in the city centre of Stuttgart for just over EUR 48 mln. The acquisitions were carried out on behalf of the group's closed-end DFH Immobilienfonds Börse/Landesjustizzentrum Stuttgart fund.

The 17,000 m² properties are almost entirely leased to the Stuttgart stock exchange, which occupies 48% of the office space, and to the Baden- Wuerttemberg federal state, taking a further 43% of surface. Other tenants include the parking space operator Baden-Württemberg, SV SparkassenVersicherung Holding, and EnBW.

The investment vehicle has a term of 15 years, running to 2024, and has a total investment volume of EUR 60.4 mln, including EUR 38.5 mln of equity. The fund is targeting an annual return of 5%.

Also in Germany, Fondshaus Hamburg (FHH) said this week that it has acquired an office building in Bonn from project developer Lang & Cie for EUR 22 mln. The new 7,600-m² building situated in the northwestern part of the city is 90%-leased to the Federal Ministry of Internal Affairs.