German property firm Godewind Immobilien has announced the acquisition of its first commercial properties since raising €375 mln in an IPO last March.
Godewind is buying two office properties with 29,300 m2 of total rental space in Frankfurt and Düsseldorf for a price of €73.5 mln. The assets, with an average remaining lease length of three years, generate €4.2 mln of rental income a year, reflecting a gross initial yield of 5.7%.
The transaction is expected to close by the end of this year.
Godewind said it plans to extract more value from the assets by reducing vacancies as well as renewing and increasing rents. These operations are expected to lift the rental income by 14% to around €4.7 mln a year.
Stavros Efremidis, CEO of Godewind Immobilien, commented: 'Following our IPO, we have now succeeded in acquiring the first attractive office properties with significant potential for value appreciation. This latest acquisition is the prelude to further acquisitions that will follow in the short term.'
Godewind Immobilien raised €375 mln in March from selling 94 million newly-issued shares on the Frankfurt Stock Exchange, at an offer price of €4 per share.
