German project development and investment company Values Real Estate has purchased a project development in Hamburg from investment manager Peakside.
Values acted as an investment manager for an investment fund of the Bayerische Versorgungskammer (BVK) managed by Universal Investment as AIFM in Luxembourg.
The former telecommunications office in Hamburg-Rotherbaum is on a 30-year lease to the Free and Hanseatic City of Hamburg.
The building, which has a gross floor space of over 65,000 m2, is currently undergoing a thorough renovation on behalf of Peakside.
After completion and expansion, the site will be used by the University of Hamburg, the Leibniz Information Center for Economics (ZBW), the German Institute for Global and Area Studies (GIGA) and the Studierendenwerk Hamburg, which will occupy 52,000 m2.
Norman Fackelmann, head of real estate at BVK, said: 'The long-term lease agreement with a government tenant and the planned ESG measures are an excellent fit with BVK's current investment approach. We are convinced that the property will generate stable and secure rental income for our investors.'
Dr. Carsten Fischer, managing partner at Values Real Estate, commented: 'The University of Hamburg's education and science center at this centrally located site forms an important milestone for the future development of the education and research location in Germany's second largest metropolis.
'It is a forward-looking investment in the public services of the Free and Hanseatic City of Hamburg. For BVK, this investment offers permanently secure distribution yields.'
Boris Schran, managing partner at Peakside, added: 'The former telecommunications office is a flagship project of our Manage-to-Green strategy. We are preserving as much of the old building fabric as possible, while at the same time raising the property to state-of-the-art standards in terms of energy efficiency and interior design.
'At the same time, we are activating new space by expanding the attics and adding basements and roofs. We look forward to working together, including with the teaching and research tenants, as we continue to manage the building.'
Values will be responsible for the asset management of the property, while Peakside will continue to provide long-term support.
Chatham Partners, HauckSchuchardt (seller), Clifford Chance and Vesthaus (buyer) acted as legal and financial advisors.
Marienburg (seller) and Drees & Sommer (buyer) handled project management and technical due diligence, while Ernst & Young provided financial due diligence on behalf of the purchaser.
