Patron Capital and Leipziger Stadtbau have sold Hainstraße 16-18 (the former Hôtel de Pologne) and Kretschmann’s Hof (Katharinenstraße 17) in central Leipzig to institutional investors.
F&C Reit Deutschland’s Best Value Germany I fund acquired Hainstraße 16-18, and Deutsche Rückversicherung AG and the Verband öffentlicher Versicherer (the German insurance association) purchased Kretschmann’s Hof.
Details of the transactions have not been disclosed.
Patrik Fahrenkamp, chairman of Leipziger Stadtbau, says: “We are delighted to pass these excellent assets on to their new owners and wish the purchasers every success with their new properties. This deal highlights the appeal of both buildings following our renovation and modernisation works and, of course, the appeal of Leipzig as a location more generally.”
Stadtbau Immobilien GmbH acted as agent for both transactions.
Keith Breslauer, Patron Capital’s managing partner, says: “The sale of these properties is another success story in our ongoing partnership with Leipziger Stadtbau AG and we look forward to continuing to work with them as we actively seek out more deals in Leipzig and across Germany. It is Patron’s plan to invest a considerable proportion of our capital in Germany over the coming months and years."
Hainstraße 16-18 became famous as the Hôtel de Pologne, which was built in 1847/1848, with its enormous ballroom. From the middle of the 20th Century, as an office building, it served as the headquarters of the Leipzig Fair. Patron Capital and Leipziger Stadtbau bought the building in 2009 after it had sat empty for 15 years and completely renovated it and set about a painstaking restoration process, being sympathetic to its historic original features.
After a four-year refurbishment programme, the ballroom was finally completed at the end of March 2014. From now on, the building, which has a total area of around 9,800 sq m, will be used as a business, office, conference and events space. On the ground floor are shops, including ‘Humanic’ a brand of German shoe retailer L&S Deutschland Schuhandels, and a café.
Kretschmann’s Hof was built between 1910 and 1912 using concrete steel frame construction and was designed by architect Max Fricke for a Leipzig fur and leather dealer. The traditional trading house comprises six floors, a large light well and an opulent glass frontage as well as an entrance onto Hainstraße.
Between 2009 and 2012, under the direction of Leipziger Stadtbau, the building was extensively restored and adapted to the requirements of its new tenants. The modern office space right in the heart of the city has a total area of 8,500 sq m. The office and retail spaces are let to recognised tenants including Stadtwerke Leipzig GmbH, Verbraucherzentrale Sachsen eV and Kabarett Leipziger Pfeffermühle.