The Real Assets Global Opportunity Fund I, a vehicle focused on core income-producing assets and value-add opportunities in the UK and Germany, has acquired the Büropark am Flughafen office complex in Duesseldorf, Germany, from Varia-Bau & Co. and Parsevalstrasse & Co.
The deal was brokered by Floreat Real Estate, investment advisor to the fund, as well as Cornerstone Real Estate Advisers, which acted as asset manager and co-investor in the deal.
Financial details were not disclosed.
Büropark am Flughafen is a two-building office complex, originally constructed in 1994, with a total lettable area of around 29,600 m2, largely for office use. The property is currently 68% let with main tenants including ZTE Services, SITA Airport IT, Arvos and Atraveo.
Floreat and Cornerstone Germany are planning to undertake a comprehensive refurbishment to further upgrade the building, which is also the former headquarters of LTU International Airways. The plans include improvements to the entrances and the façade, as well as the external landscaped areas and underground car park.
Clive Thomas, managing director of Floreat Real Estate, commented: 'This acquisition is our second in Germany, and aligns with our strategy to acquire well-located assets in markets with strong economic fundamentals, adding value to future cash flows. The Duesseldorf office market has a strong supply and demand balance, and the proposed refurbishment of the asset, which is also positioned close to the airport, will drive performance and future leasing activity. We hope to continue to add to our portfolio of assets in Germany over the next 12 months, with a focus on the office and logistics sectors.'
'Büropark am Flughafen is a strong value-add play, and we will work alongside Floreat and the existing tenants to develop this opportunity. The next stage is to further stabilise and improve the letting situation, and we believe the reconfiguration and refurbishment works scheduled for the next 12 months will help us to achieve this,' added Julian Kaup, Duesseldorf's branch manager of Cornerstone Germany.
Savills' German office brokered the deal and provided consultancy services.
Taylor Wessing acted as legal advisor to Floreat and Cornerstone Germany, while McDermott Will & Emery Rechtsanwälte Steuerberater advised the vendor.
