Investment manager Valad Europe has acquired a portfolio of six office buildings in Germany for an undisclosed sum, at a net initial yield of 8.76%.
Investment manager Valad Europe has acquired a portfolio of six office buildings in Germany for an undisclosed sum, at a net initial yield of 8.76%.
The portfolio comprises 35,860 m2 of office space at four locations in Nuremberg, one in Cologne and one in Hamburg. The 44 tenants include Nash Technologies, Hochtief, Alstom Power Service and the German government employment agency Bundesagentur für Arbeit.
The assets were acquired for the Valad European Diversified Fund (VEDF), a €1 bn fund which invests in value-add assets in the UK, Germany and France, employing leverage of 50-65%. Other recent acquisitions include a car showroom and shopping centre in northern England, for a total outlay of €58 mln, and two refurbished office buildings in Marseille for €25 mln.
Danilo Hunker, Valad Europe’s head of asset management in Germany, said: ‘This is our sixth acquisition for VEDF in Germany this year, where we have around €130 mln so far invested or committed.
‘This latest portfolio of assets is in strong locations, in major German cities, with value-add potential through asset management initiatives such as void reduction and extending existing leases. We believe the German office sector continues to offer good value due to the strengthening occupier market and current low level of development activity.’
Frankfurt WhiteWater Real Estate Advisors acted for the vendor, an international family office.
Valad Europe manages €5.3 bn of real estate assets and investment capacity across 24 funds and mandates in Europe.
