South Korean investor Hyundai Investments has joined forces with French asset manager La Française to invest in medium-sized offices in established business districts of targeted cities in Germany, Belgium, the Netherlands, Luxembourg and Ireland.
The core/core+ risk profile partnership, HILF Euro Office JV, has completed the first acquisition with the purchase of a fully let office building in the city of Essen, Germany. The deal was based on a sale-and-leaseback transaction with RWE, which is one of the largest energy suppliers in Germany. The duration of the lease is 17.5 years.
The property is located at Altenessener Str. 27 to the north of Essen and is part of the RWE Campus, which includes several office buildings which are owned by or let to RWE.
The six-storey office property, completed in 2009, provides 11,754 m2 of office space and includes a trading floor of 2,949 m2 which is home to RWE’s energy trading activities.
David Rendall, managing director of La Française Real Estate Managers, said: ‘This is a new strategy which seeks to diversify the exposure of Korean investors to office assets which are modern and well let in both major and tier 2 European cities. The business plan for the joint venture will consider opportunities for asset management of the portfolio over a holding period of up to 8 years. Further acquisitions are planned over the next 12 months.’
