Pembroke expands in Germany with 'triple Hamburger' deal

Pembroke Real Estate has extended its German operation to Hamburg by buying three properties from Swedish investor-developer Norrporten.

The three buildings – Hamburg America Center, Coffee Plaza and S-Kai, in the HafenCity district – span 32,000 m2 of commercial and retail space and are 90% let.

The purchase price was not disclosed, but Norrporten paid a total of €120 mln for the properties when it acquired them between 2007 and 2009.

The investment marks Pembroke’s first entry into the Hamburg market, with the US investor already established in Munich with a portfolio of three properties acquired in 2011 and 2012.

HafenCity is Europe’s largest inner-city development project, with €10.4 bn invested in the regeneration of the dockside area through public-private partnerships.

Johannes Haug, senior vice-president and global head of acquisitions and dispositions at Pembroke Real Estate, said: ´Demand for office space in Hamburg has been increasing steadily and these three properties demonstrate this with occupancy at 90% and most recently, the law firm Kapellmann, has signed an agreement to lease more than 1,300 m2 in S-Kai.´

Jörgen Lundgren, CEO of Norrporten, said: ‘There is high demand for modern office properties in Hamburg and it has been exciting to participate in such a large urban development product. Since announcing last autumn that we were planning to sell, we have been contacted by some twenty interested parties.’

Norrporten acquired the America Center in 2007 for around €30 mln, the Coffee Plaza in 2008 for €32 mln and the S-Kai in 2009 for €58 mln.