Hannover Leasing, part of the Corestate Group, has launched a new closed-end property alternative investment fund for private investors and inked an initial deal in Frankfurt.
The asset acquired is called Quartier West, and comprises an office and hotel complex with 14,963 m2 of space, situated in Darmstadt, south of Frankfurt.
Financial details were not disclosed.
It consists of two buildings, an office with 9,205 m2 rental space, which is already fully leased to four companies from the service, technology, business and tax advisory sectors, as well as a hotel property with 5,758 m2 of gross floor area.
The latter is leased for 20 years, including an extension option, to the Dutch hotel developer and manager Odyssey Hotel Group. The company will operate the hotel comprising 178 rooms in total as well as a restaurant under the Moxy brand (Marriott International).
'Darmstadt is also called Wissenschaftsstadt (City of Science). The Technische Universität (University of Technology) and two further universities as well as numerous globally active corporates are boosting demand for both overnight stays and congresses. It is therefore not surprising that the asset was fully leased before completion,' commented Marcus Menne, managing director of Hannover Leasing.
The new fund has a projected payout of 4.1% per year and is available to investors in tranches starting from €10,000. The total investment volume amounts to €63 mln, of which €32.5 mln is equity.
