Canada's Dream Global REIT has agreed to acquire Cologne Tower, a €113.6 mln office property in the German city Cologne, in the trust’s largest single-asset acquisition to date.

Canada's Dream Global REIT has agreed to acquire Cologne Tower, a €113.6 mln office property in the German city Cologne, in the trust’s largest single-asset acquisition to date.

The deal reflects a cap rate of 5.4% and was financed with a 10-year mortage loan reflecting a loan to value of 60% and an interest rate of 1.77%.

The vendors are Art-Invest and InfraRed Capital Partners.

The property, which was built in 2002 and extensively renovated in 2012, received LEED Gold certification in 2013 and comprises 27,600 m2 of gross leasable area with tenants including IQWiG, a scientific institute sponsored by the German government, Boston Consulting Group, Swiss Life Select and Liberty Mutual Group. The weighted average remaining lease term is 6.2 years and the occupancy rate is 90%.

'We are excited to have added such a landmark property in one of Germany’s top office markets to our portfolio,' said Jane Gavan, CEO of Dream Global REIT, formerly known as Dundee International REIT.

In addition, the trust said it has secured exclusivity for another €100 mln office property in Germany and expects to close this further purchase at the beginning of 2015, thereby fully deploying the proceeds from its joint venture with South Korea's Public Official Benefits Association (POBA).

Dream Global announced in August that it had formed a joint venture with the South Korean pension fund to invest in German office properties.

POBA (Public Officials Benefit Association) is a South Korean pension fund for government officials with 235,000 participants and one of the country's most active overseas real estate investors. Since it was founded in 1975, it has built a global commercial real estate portfolio that includes assets in England, China and Brazil.