Starwood Capital Group has joined forces with local operating partner Cells Property Investors to acquire two office properties in Hamburg for an undisclosed amount.
The assets are Kieler Park and Sachsenkamp 5, offering a combined area of 22,800 m2.
The transaction is Starwood Capital Group's second investment in Europe through a recently established vehicle focused on Value Add opportunities. In October last year the fund acquired St Vincent Plaza in Glasgow, Scotland.
Stephan Schlomberg, associate at Starwood Capital Group said: 'We believe that the submarkets around both buildings will continue to improve in the mid-term due to large scale infrastructure projects such as the relocation of the Altona main line train station to Diepsteich, situated within a few hundred meters from Kieler Park, and the continued development of Hafen City, close to City South where Sachsenkamp 5 is located.'
The company plans to make additional investments in Germany, which remains a core focus across a number of capital sources and investment strategies, added Keegan Viscius, vice president at Starwood Capital Group.
JLL, GSK Stockmann, PwC, and Drees & Sommer acted as advisers to Starwood Capital Group and Cells Property Investors. Senior bank financing was provided by Deutsche Pfandbriefbank.
