Union Investment has acquired the Haus am Aegi office building in Hanover city centre from developer Quantum Immobilien, on behalf of its institutional real estate fund UniInstitutional German Real Estate.
Financial details were not disclosed.
Wolfgang Kessler, a member of the management board of Union Investment Institutional Property said: 'Hanover, the capital of Lower Saxony, is regarded as one of Germany’s most dynamic secondary cities. It has seen robust and continuous rent growth in recent years, particularly in city centre locations.'
Arndt Buchwald, managing director of Quantum Immobilien said: 'We are delighted to have found a long-term, sustainable investor for this premium property in Union Investment. The Haus am Aegi was built by Quantum to our high quality standards and is now going into new good hands after a 5-year holding period.'
The office building is an architectural landmark on Aegidientorplatz square, one of the best office locations in downtown Hanover. Aegidientorplatz subway station is right outside the building, with the main railway station just a five-minute journey away.
Built in 2015 by Quantum Projektentwicklung, Haus am Aegi comprises three sections of different heights: one with five storeys, one with six storeys and one with ten storeys. There is also an underground car park with 137 parking spaces. The building offers total rental space of 11,545 m2 and is currently 100% let, with the main tenant being consulting firm Deloitte. The building holds DGNB sustainability certification in Silver.
Institutional real estate fund UniInstitutional German Real Estate invests exclusively in commercial properties in major and medium-sized German cities with a focus on properties worth between €15-50 mln. It currently holds properties with a total value of around €838 mln.
Union Investment was advised on legal aspects of the deal by law firm KFR, on tax aspects by Watson Farley & Williams LLP and on technical aspects by Drees & Sommer.
Quantum was legally advised by GSK.
