Cityhold has increased its exposure to German real estate to €300m after making its latest acquisition in Hamburg.
The company, which invests on behalf of Sweden’s national pension funds AP1 and AP2, has built up a €900m portfolio invested in London, Munich and Hamburg.
The investor has bought an office development project from Frankonia Eurobau in an off-market deal.
Burstah Offices in central Hamburg is under construction and planned for completion in the spring.
It comprises eight storeys with 18,000sqm of space, 80% of which is office and 20% retail.
The deal comes soon after Cityhold’s first investment in Hamburg, an acquisition of a high-rise office, Atlantic Haus.
Berith Kübler, head of Germany at Cityhold, said: “We are very pleased that we managed to exchange on another investment in Hamburg within a month after the acquisition of Atlantic Haus.
“This shows our commitment to Germany as an investment market and we are planning to expand further.
“Burstah Offices is a new, high quality building in an excellent location in the city centre of Hamburg which perfectly meets our investment criteria.”