TH Real Estate acquires office building in Vienna

TIAA Henderson Real Estate (TH Real Estate) has acquired an office building in Vienna on behalf of its Warburg - Henderson Österreich II investment fund.

The asset, Workstation Wien West, was sold by Raiffeisen Property Holding International for €34.4 mln.

Located in the district of Penzing, the asset was built in 2002 and 2004, and is divided into two office spaces comprising a total area of 17,870 m2 and fully let to Allianz and the city of Vienna. Both parties have signed long-term leases.

Warburg - Henderson Österreich Fonds Nr. 2, which was launched in March 2011, invests in a diversified portfolio of commercial properties with a risk/return profile of core to core-plus. The fund is aimed at German and Austrian investors. It targets a yearly total return (IRR) of 7% on equity invested. The investment focus is on retail properties across Austria and office properties in Vienna. Once fully invested the fund will consist of between 10 and 15 properties.

The portfolio now comprises six retail warehouses in Fürstenfeld, Linz, Mistelbach, Groß Enzersdorf and Rosental, one shopping centre in Spittal and three additional assets in Vienna. Further acquisitions are in the pipeline, the fund manager said.

'This is yet another great addition to the fund portfolio, said David Moese, head of investment for Austria at TH Real Estate. The office building is located close to the centre of Vienna and provides numerous asset management opportunities to further enhance value for our investors.'

Stefan Hellwig, senior fund manager at Warburg-Henderson, added: 'Workstation Wien West perfectly matches the requirement profile of the fund, mainly due to its good location and creditworthy tenants. The focus of this investment is on long-term lease structures.'