Union Investment has acquired the Medicus portfolio including six mixed-use core properties in Düsseldorf and Berlin for a recently launched fund focused on the prime core segment.
The Medicus portfolio was sold by a pension scheme (Versorgungswerk) as well as a joint venture of several pension schemes and Hines. Although the price was not disclosed, the transaction is said to be one of the largest in the German office real estate market this year.
The portfolio, which is said to be worth around €400 mln, was put on the market earlier this year through agent BNP Paribas Real Estate. PropertyEU first reported about the sale back in June.
The package consists of six core properties with a total rental space of 46,000 m2, primarily comprising of office and hotel components.
Three of the properties are project developments, and another three are portfolio properties. The Berlin portfolio includes the office building currently under construction in the Südkreuz Berlin district. However, the residential units which are currently built there are not part of the agreement.
‘The high level of interest in the run-up to the sale as well as the now successful sale clearly show the attractiveness of the portfolio,’ commented Christoph Reschke, senior managing director of Hines Immobilien. ‘We are very pleased that we were able to demonstrate our capabilities once again in negotiating one of the largest transactions in the market.’
Wolfgang Kessler, managing director of Union Investment Institutional Property added: ‘The Medicus portfolio has an outstanding property quality in predominantly top core locations with an attractive mix of new and existing properties, different lease terms with stable cash flow and rental potentials, as well as a stable value going forward. The portfolio has enabled us to lay the essential foundation for a prime core strategy for our institutional investors.’
The sellers were legally advised by P+P Pöllath + Partners. Tax advice was provided by Ernst & Young. Union Investment was supported by Linklaters as legal counsel.
