German fund manager Warburg-HIH Invest Real Estate has purchased a new office complex in Cologne, Germany, from the project development firm Landmarken as part of a forward funding deal.
Financial details were not disclosed.
The six-storey office building on Rudi-Conin-Straße, dubbed Kite, has a gross lettable area of 22,800 m2 and 477 parking spaces. Some 75% of the lettable area has been leased for a term of 25 years to Sparkasse KölnBonn, the largest public savings bank in Germany.
'Acquiring the project under development at an early stage allows us to secure a very long-term lease with a loyal and creditworthy local tenant at a high-growth location in Cologne,' said Hans-Joachim Lehmann, managing director of Warburg-HIH Invest.
'With a vacancy rate of just over 2%, office space is in short supply in Cologne. On account of the city’s economic development, the situation in the market is unlikely to ease any time soon,' Lehmann added.
The new office building in Cologne’s Ossendorf district will be transferred to an individual fund belonging to the provident fund organisation Rheinische Versorgungskassen Köln (RVK).
Plans are in place to obtain DNGB gold certification for the project's sustainable credentials.
The asset is directly connected to the city’s rapid transit system and is located on the site of the former Butzweilerhof airport, one of the largest new residential and commercial developments in Cologne.
The buyers were advised by the law firm Ashurst, with technical advice provided by ES Enviro Sustain.
