Fund manager Union Investment Real Estate has bought the Weser Tower building in Bremen, marking its first office acquisition in the mid-sized German city.
Fund manager Union Investment Real Estate has bought the Weser Tower building in Bremen, marking its first office acquisition in the mid-sized German city.
The 22-storey property was acquired from its developer Siedentopf for an undisclosed price. It is leased in its entirety to EWE, Germany’s fifth-largest energy provider, which still has around 17 years to run on its lease.
Measuring 82 metres in height, Weser Tower offers around 18,000 m2 of rental space and is the tallest office building in the city and wider region. It was completed in 2010 to a design by architect Helmut Jahn and features an all-glass façade.
‘The combination of a high quality property, its excellent location and the fact that it is fully let to a financially sound municipal company made the decision to enter the Bremen office market easy,’ said Christoph Schumacher, a member of the management team at Union Investment Institutional Property. ‘With its traditionally low vacancy rate, Bremen is an attractive alternative to Germany’s mainstream real estate markets.’
Weser Tower will be added to open-ended real estate fund UniInstitutional European Real Estate, which is targeted at institutional investors.
The vendor was advised by Jones Lang LaSalle.
Union Investment said it intends to carry out more acquisitions in German mid-sized cities. The investment focus is on office and commercial properties worth between €15 and 50 mln.
