German office investor and asset manager Publity has acquired the headquarters of department store chain Karstadt in the Ruhr city of Essen.
The complex, which comprises four buildings over 109,000 m2 of floor space and a separate garage, comes with a 12-year lease and opportunities for further development. The purchase contract includes an option to redevelop around 30,000 m2 of the leasable area.
Karstadt said the sale meant it was able to retain its headquarters in Essen-Brederney, following speculation in the German media that it was planning to relocate to Oberhausen or Düsseldorf.
'The property offers investors and project developers a lot of potential for further use as an office location or even conversion to attractive residential location,' said Publity's CEO Thomas Olek. 'Essen-Bredeney is also a highly sought-after location for commercial uses as well as residential space.'
CMS Hasche Sigle provided legal advice on the transaction, including project management and legal due diligence. Albrings + Müller advised on technical matters.
