HIH Invest Real Estate has acquired the Milestone 5c office development in the centre of Freiburg from the project's developer, Strabag Real Estate.
Financial details were not disclosed.
The property is a six-storey office building with an additional recessed storey and a single-level underground car park to be constructed on Heinrich-von-Stephan-Strasse in direct proximity to the central railway station of Freiburg.
The scheme, with a gross lettable area of 7,711 m2, is scheduled to be completed by the second quarter of 2023. The basement will include 64 car parking spots and operations rooms. A two-storey day nursery will occupy certain sections on the ground floor and the floor above.
The property has already achieved a pre-let ratio of over 90%, with public-sector tenants accounting for 65% of the space, among them the state-owned enterprises Bundesbau Baden-Württemberg and Vermögen und Bau Baden-Württemberg. Other tenants include the German Red Cross. The property already has a DGNB Gold certification.
Daniel Asmus, team leader transaction management Germany at HIH Invest Real Estate, said: 'The development represents an attractive investment for our real estate portfolio. The centrality of the site in the inner city of Freiburg means very convenient access to the public transportation system and close proximity to the central railway station, making Heinrich-von-Stephan-Strasse an attractive office location.'
The scheme is part of the Businessmile site where Strabag is developing an office quarter with a total lettable area of about 47,500 m2.
The sale was closed as an off-market transaction on behalf of an institutional property fund. The legal and fiscal due diligence (DD) was performed by Ashurst, based in Frankfurt. Drees & Sommer SE, the firm also responsible for the ESG due diligence, handled the technical due diligence.
