UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) business has acquired two predominantly public sector-tenanted office properties in the German cities of Hamburg and Wiesbaden for a combined price of €50 mln.
The two properties were acquired off-market and in separate transactions on behalf of clients of UBS-AM.
The Hamburg asset is centrally located in the heart of Hamburg’s City Süd district. The seven-story property, named ‘Südetagen’, comprises 10,055 m2 of lettable floor space along with an underground car park. The asset has been acquired fully let with a local public administration accounting for the majority of rental income. The asset was acquired from Kriton Immobilien LLC, which managed the asset on behalf of Litos Immobilien PLC, a majority holding of Provinzial Rheinland Versicherungen.
The second property is located in Wiesbaden, the capital of Hesse. The recently refurbished asset offers 3,281 m2 of office space spread over six floors along with 80 parking spaces and is fully occupied by a German government tenant. The office is centrally located on Viktoriastr, a short walk from Wiesbaden’s mainline train station.
Peter Rocker, head of acquisition & disposition for Austria and Germany, UBS-AM Real Estate & Private Markets, commented: ‘While the world currently faces a challenging backdrop, quality office properties located in strong economic regions and providing high income security offer a rare opportunity for us to deliver resilient returns for our clients and we have every confidence in the prospects for this type of asset over the long term. Both properties offer highly defensive characteristics combined with attractive growth prospects, making them ideally suited for long-term holds.’
Jones Lang LaSalle advised UBS-AM on the Hamburg transaction.
