An Israeli insurer has backed the €250 mln sale-and-leaseback acquisition of the headquarters of German insurance group Gothaer in Cologne.
An Israeli insurer has backed the €250 mln sale-and-leaseback acquisition of the headquarters of German insurance group Gothaer in Cologne.
Gothaer Group did not identify the Israeli insurance company that formed a joint venture with Aurec Capital, a private equity firm with offices in Berlin, Tel Aviv and New York, for the acquisition.
The four-building complex comprises 100,000 m2 of space at Arnoldiplatz 1 in the Bayenthal district of Cologne. The investment volume was not disclosed but market sources have said it was around €250 mln.
Gothaer was advised by Colliers International Düsseldorf and by Clifford Chance Germany. Aurec Capital was represented by Berwin Leighton Paisner (Germany) and by Drees & Sommer Düsseldorf.
Gothaer sold the complex as part of the diversification of its real estate portfolio and said it is leasing it back for 15 years as it remains 'committed to Cologne' for the long term. The proceeds will be re-invested in real estate elsewhere in Germany. Schroder Property an LHI Leasing acted as asset managers on behalf of Gothaer in the transaction.
With a history dating back to the 1820’s, Gothaer is one of Germany’s largest mutual insurance companies with more than 3.5 million policy holders and annual gross written premiums of €4.45 bn.
Ignaz Trombello MRICS, head of German investment at Colliers International, said: 'With this sale-and-lease-back transaction the Gothaer Group seized on the current strong demand for high-quality offices in attractive locations in Germany.'
The transaction coincides with the publication by Colliers of a report that says Europe is witnessing a marked increase in sale-and-leaseback transactions. Sale-and-lease-back deals generated a volume of €2.8 bn in 2014, which equates to 6.4% of the overall real estate investment market, up from less than 3% in 2013. Click here for a PDF of Collier's white paper on sale-and-leasebacks