German fund manager Union Investment has acquired the Ericus-Contor office building in Hamburg's HafenCity from Patrizia in what is being described as the biggest single-asset deal in the German city this year.
Financial details were not disclosed.
'In the current market phase, transactions around the world have virtually ground to a halt,' said Martin J. Bruehl, Union Investment's chief investment officer. 'Boasting high construction quality and an excellent location, Ericus-Contor proves that it’s possible for premium properties to change hands despite the coronavirus pandemic and that appropriate pricing is possible.'
Constructed in 2012, the asset at Ericusspitze 2–4 offers a total rental space of 19,000 m2. The majority of the space – some 17,500 m2 – serves as offices. There are also areas for restaurants (360 m2), services (460 m2) and storage (580 m2), as well as 219 underground parking spaces.
Union Investment said it acquired the asset for its open-ended fund, Unilmmo: Deutschland. The property is currently 98% let. The main tenants include shipping company Maersk, container line Hapag-Lloyd and fashion retailer Chanel. The property holds Platinum DGNB certification, the highest sustainability rating awarded in Germany.
'By making this core investment in our home market of Hamburg, we’re delighted to be able to send out a positive signal in terms of transactions in 2020,' Bruehl added.
Ericus-Contor was acquired by Patrizia in 2014. Following a programme of active asset management, Patrizia said it had now completed its business plan for the property.
Philipp Schaper, head of transactions Europe at Patrizia, commented: 'This sale of a landmark trophy asset in one of Germany’s leading cities is evidence of the continued demand from buyers looking for quality core real estate assets like Ericus-Contor, even during these challenging times.
'Since acquiring the property in December 2014, the HafenCity district has grown from strength to strength, which has enabled us to crystallise positive returns for our investors.'
