Warburg-HIH Invest Real Estate has acquired a commercial property portfolio in Germany from a real estate special fund managed by Real IS.
Financial details were not disclosed, but the German press put the deal price at around €50 mln.
The Hattrick portfolio comprises three fully let multi-tenant commercial properties in Mannheim, Wiesbaden and Munich, offering 12,200 m2 of lettable space, 70% of which is office space and 25% retail/showroom space.
Health insurer Krankenkasse Barmer and Mannheim city council are the anchor tenants, with the asset boasting a weighted average unexpired lease term (WAULT) of around 6.6 years.
'With this acquisition, we are gaining three fully leased portfolio properties including anchor tenants with high credit ratings who are loyal to the location. The portfolio enables us to generate cash flows and realise medium-term appreciation potential for our investors,’ said Hans-Joachim Lehmann, managing director of Warburg-HIH Invest.
'In addition to acquisitions in the top seven cities in Germany, we also take advantage of investment opportunities in growth cities. For example, Wiesbaden is characterised by high demand for office rental space with a current vacancy rate of just under two percent. In the state capital of Hesse, tenants with high credit ratings, such as public authorities, ministries and other public service providers, are particularly on the lookout for new space,’ continued Lehmann.
