Investment manager Freo Group has made the first investment for its value-add office fund with the acquisition of an office property in Hamburg from BayernLB's property arm, Real IS.
Financial details were not disclosed.
Hammerbrookstrasse 92 is located in Hamburg City-Süd and has a total lettable area of 8,681 m2 and 70 parking spaces.
Freo said that it had already identified a number of asset management initiatives to further enhance the value of the property in line with the fund strategy. These include improving the sustainability of the property to achieve green building certification.
Commented Matthias Luecker, CEO of FREO Group: 'Working with institutional capital to find the best value-add real estate opportunities across Europe is part of Freo's DNA, so we are delighted to be in the market at the right time with this fund.
'Our first acquisition for the fund was a compelling opportunity to acquire a well-located asset with significant upside potential following a targeted asset management programme to create a prime, ESG-friendly office building.
'It's exactly the type of property we want to acquire for the Fund and we look forward to announcing further transactions in the future.'
Freo's pan-European value-add fund was launched on behalf of institutional investors and targets underperforming office properties in submarkets with limited supply in major European cities, including Paris, Madrid, Barcelona and key cities in Germany.
The fund's strategy focuses on converting assets into prime products. It is a closed-end fund that focuses on environmental and social characteristics in accordance with Article 8 of the SFDR.
The seller was advised by Colliers International and GÖRG Partnerschaft von Rechtsanwälten. The DPR was advised by HFK Rechtsanwälte, Chlifford Chance Luxembourg, HauckSchuchardt and CBRE. The senior debt financing was arranged by Nord LB/Deutsche Hypo.
