Valad Europe has acquired an office property in the central German city of Wiesbaden at a yield of 9.37% on behalf of its Valad European Diversified Fund (VEDF).

Valad Europe has acquired an office property in the central German city of Wiesbaden at a yield of 9.37% on behalf of its Valad European Diversified Fund (VEDF).

The property at Gustav-Nachtigal-Strasse 5 in Wiesbaden was sold for an undisclosed price by a private equity fund advised by Hamburg-based asset manager Atos.

Comprising 7,600 m2 of office space, the 10-storey building is located in Wiesbaden’s commercial centre. The building is currently let to several well-known tenants including Bilfinger, Barmer GEK Hauptverwaltung and BDO.

Andreas Hardt, Valad Europe’s head of Germany, commented: 'This is the second office property we have acquired for VEDF in Germany so far this year and is a good fit with the fund’s investment criteria. Let to a high quality set of tenants with strong covenants, in a strategically important area of Germany, we believe the asset will provide an attractive, stable return for investors in the fund.'

Immo Mannheim Treuhand Maklergesellschaft advised Valad Europe, which manages €5.3 bn of real estate assets and investment capacity across 24 funds and mandates in Europe.

VEDF was launched with initial equity of €190 mln in 2003 to invest in the UK and Germany. Within eight months, the total capacity of the fund was doubled to €1 bn by securing a further €190 mln of new equity from existing investors. The fund's investment geography was also expanded to include France.