Listed German property investor Patrizia has acquired an office property in Bad Homburg, close to Frankfurt airport, from fund manager Commerz Real.
The nine-storey Marienbader Höfe property was acquired on behalf of the Patrizia Gewerbe-Immobilien-Deutschland III fund as part of a core-plus strategy. The parties agreed not to disclose the purchase price.
The asset offers a lettable area of 27,000 m2 and more than 500 underground parking spaces. It is fully let with an average remaining lease term of more than five years.
Marienbader Höfe was built in 2000 for single-tenant use. In 2016 it underwent a €11 mln refurbishment programme which converted the property into a multi-tenant building. Current tenants include The Deutsche Leasing Group, First Data and Fresenius.
Bad Homburg is situated to the north of Frankfurt just 15 minutes from Frankfurt Airport and 20 minutes to the Frankfurt’s central business district. Over 60 public transport connections run daily between the two cities.
Commenting on the deal, Daniel Dreyer, Patraizia’s head of acquisitions, said: ‘We identified Bad Homburg as a city with a strong economic potential. As well as hosting international companies such as Fresenius, Hewlett Packard and Lilly Pharma, its population of around 53,000 inhabitants boasts the second-highest rate of spending power in Germany.’
He added: ‘The property’s excellent micro location between the train station and the city centre, diverse tenant mix and opportunities for further active asset management make this a very attractive investment for our clients.’
Office space accounts for around 30% of Patrizia’s assets under management. Recent transactions across Europe include the €26 mln acquisition of the Apex House office complex in Edinburgh and two separate acquisitions in Munich. In addition, Patrizia’s portfolio of business parks in the UK was sold in the third quarter of 2017 for around € 1 bn.
