IVG strengthens position in German office investment market

German real estate invest company IVG Immobilien has acquired four office properties for EUR 190 mln from German open-ended real estate fund Difa. The properties are located in Munich, Dusseldorf and Stuttgart.

IVG said it will add the properties to its own portfolio to strengthen its position in the German office market. The portfolio comprises a total lettable space of 66,000 m². The majority of the buildings were built in the 1990s or later and IVG said they are in 'excellent' condition.

The office buildings are leased up to 88% of capacity on long-term contracts and IVG said it aims to reduce the current 12% vacancy rate 'as soon as possible' in a bid to boost the capital appreciation of the properties.

'In conjunction with the positive economic development in Germany, our office markets still offer significant upward potential both in terms of rents and property prices when compared internationally', said Wolfhard Leichnitz, chairman of IVG Immobilien. IVG manages EUR 17 bn in real estate assets, focusing on office properties in major European cities.