Global investor Patrizia has acquired a prime office building in Heidelberg from Tristan Capital Partners’ CCP 5 LL fund and DW Real Estate, on behalf of its clients.
Financial details were not disclosed.
Located on Speyerer Street in Heidelberg, the BREEAM ‘very good’ property comprises 25,960 m2 of office and laboratory space as well as a fitness studio and 450 underground parking spaces for occupier use.
Uwe Hettwer, associate director transactions at Patrizia, commented: 'Heidelberg enjoys high demand for modern, amenity-driven office space owing to its large population of graduates and young professionals.
'This property in the heart of Heidelberg’s bustling Bahnstadt district benefits from its proximity to national transport links, walking distance to the main station and several companies from the bio science sector in the Bahnstadt submarket.
'Strong sustainability credentials and amenities boost the asset’s appeal to occupiers, while its existing mix of tenants and high occupancy offer a reliable income stream.'
The office space is 95% let to a range of strong occupiers and divisible into small office units of approximately 340 m2, maximising flexibility for occupiers. The weighted average lease term amounts to almost eight years.
Located on one of Heidelberg’s main roads near to the city’s main railway station, the asset is part of Heidelberg’s Bahnstadt district.
Added Beatrice Freiberger, director at Tristan Capital Partners: 'We acquired the property as it presented the potential to drive rental income, increase average lease terms and enhance the environmental credentials of the building as a result of a refurbishment programme that was central to our business plan.
'Together with DW Real Estate we have successfully increased rental income by almost 10% as well as regearing leases with all major tenants resulting in a weighted average unexpired lease term of 8.2 years.
'This transaction demonstrates the continued demand for welllocated, sustainable, high quality office assets.'
