Union Investment has agreed to acquire an office property in Potsdam offering approximately 7,300 m2 of space.
Financial details were not disclosed.
The building will be upgraded by the end of 2019 and is let on a long-term lease to a municipal company, the German fund manager said. The acquisition is being made on behalf of open-ended special real estate fund DIFA-Fonds Nr. 3.
'The office property market in Potsdam is currently benefiting hugely from low vacancy rates in Berlin and has positioned itself in recent years as an attractive alternative or addition to the capital. In addition, the long-term lease with a municipal company gives us a high degree of investment security,' said Wolfgang Kessler, a member of Union Investment's management team.
The office property was built in 1997 on the site of a former barracks north of Potsdam’s main railway station. The building comprises four storeys of office space and forms a square around an inner courtyard. The property has 207 parking spaces, 143 of which are in an underground car park.
Union Investment was advised on the legal aspects of the transaction by Norton Rose Fulbright and on technical aspects by Kaiser Baucontrol.
