TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, has acquired TechnologiePark, an office park in Cologne, Germany, from global investment organization EQT's Real Estate Fund I. Terms of the transaction were not disclosed.
The deal represents EQT's first exit from Germany and encompasses a 116,500 m2, seven building, multi-let office portfolio, with 97% occupancy, located in close proximity to Cologne’s central business district.
The package includes the Mercedes-Benz-Centre, a regional car showroom hub and full-service center spanning approximately 35,000 m2.
TechnologiePark serves a prominent group of tenants with long-term rental agreements, including Daimler and the Ford Motor Company, as well as the German government.
Michael Abel, Partner at TREP, commented: 'The acquisition of TechnologiePark underscores TREP’s thematic approach to sourcing compelling investment opportunities across Europe. We have spent years studying the German office markets and identified Cologne as a city with attractive growth fundamentals and strong rental momentum. Not only does TechnologiePark benefit from high-quality assets with stable blue-chip tenants, but the portfolio is strategically located and well positioned to benefit from rising demand for office space in Cologne.'
After acquiring the portfolio out of insolvency at a substantial discount to replacement cost in late 2016, EQT Real Estate implemented a robust set of value creation initiatives through a multi-pronged, hands-on asset management plan including implementing accretive lease renewals, completing physical improvements of the buildings and streamlining the operational management of the portfolio. In addition, important sustainability measures were taken into consideration in all maintenance and capital expenditure programs as well as including 'green lease' clauses when re-gearing tenants.
EQT Real Estate has been advised by Ashurst, Colliers International and RheinReal.
