Corestate’s Hannover Leasing subsidiary has announced the sale of the Duisburg CityPalais mixed-use property to Volksbank Braunschweig Wolfsburg (BraWo).
Although financial details were not disclosed, German papers put the deal price at €109 mln.
The asset was bought by Hannover Leasing in 2007 as part of a forward purchase for some €100 mln. The CityPalais provides 37,700 m2 of rentable space and an underground car park with 649 parking spaces. With an occupancy rate of 97%, it is almost fully let. Users include the City of Duisburg and a mix of office, restaurant and retail tenants.
Nils Hübener, CIO of Corestate said: ‘It was clear to us from the outset that the CityPalais is of great importance for the region surrounding Duisburg. We have lived up to this responsibility and have continuously developed the property into a sustainably attractive property, both for our investors and in the best interests of the city. For example, we responded very early to the changes in the retail sector with our modern mixed-use concept and were thus able to achieve a high return of more than 70% on equity for our investors. This shows that we offer what is needed to accompany demanding lighthouse projects over the entire cycle from construction to management and sale from a single source.’
