Patron sells Leipzig properties

Private equity firm Patron Capital and Leipziger Stadtbau have sold the former Hôtel de Pologne at Hainstrasse 16-18 and Kretschmann’s Hof in central Leipzig to institutional investors.

F&C REIT Deutschland’s Best Value Germany I fund acquired Hainstraße 16-18, while Deutsche Rückversicherung and the German insurance association (Verband öffentlicher Versicherer) purchased Kretschmann’s Hof. Details of the transactions have not been disclosed.

Hainstrasse 16-18 became famous as the Hôtel de Pologne, which was built in 1847-1848, with its enormous ballroom. From the middle of the 20th Century, as an office building, it served as the headquarters of the Leipzig Fair.

Patron Capital and Leipziger Stadtbau bought the building in 2009 after it had sat empty for 15 years. After a four-year refurbishment programme, the ballroom was finally completed at the end of March 2014. Comprising a total area of around 9,800 m2, the property will in future be used as a business, office, conference and events space.

Kretschmann’s Hof was built between 1910 and 1912 using concrete steel frame construction and was designed by architect Max Fricke for a Leipzig fur and leather dealer. The traditional trading house comprises six floors, a large light well and an opulent glass frontage as well as an entrance onto Hainstrasse.

Leipziger Stadtbau led the restoration which created the 8,500 m2 office and retail building from 2009 to 2012.

Keith Breslauer, Patron Capital’s managing partner, said: 'It is Patron’s plan to invest a considerable proportion of our capital in Germany over the coming months and years.'

Stadtbau Immobilien acted as agent for both transactions.