US developer-investor Hines has joined forces with German pension fund Ärzteversorgung Westfalen-Lippe (ÄVWL) to acquire a mixed-use asset in Stuttgart, Germany.

 

The building was sold by the closed-end fund of the Deutsche Fonds Holding AG (DFH).

Although the transaction price was not disclosed, German press reports put the value at between €50 and €60 mln. The deal was financed by Dutch bank ING.

Kronprinzbau 2 is a mixed-use building located in the immediate vicinity of Stuttgart’s main shopping street. It provides 8,500 m2 of office and retail space, with the entire office element being leased to LBBW on a long-term basis.

The purchase of Kronprinzbau 2 follows the acquisition of the adjacent property, Kronprinzbau 1 from Credit Suisse in 2014.

Hines Immobilien is responsible for the management of the asset.

‘Kronprinzbau 2 is one of Stuttgart’s centerpieces and a very attractive investment. After the completion of the Postquartier project and the acquisition of the headquarters of Mercedes-Benz Bank as well as Kronprinzbau 1 and Caleido, Hines Immobilien now manages another trophy asset in Stuttgart,’ said Emanuel Coskun, director of Hines Immobilien.

Colliers International brokered the deal. The vendor was advised by law firm Grunert-Albrecht while the buyer was advised by Pöllath + Partners, Clifford Chance, and PwC.