Patrizia acquires office complex in Bad Homburg
Patrizia Immobilien has acquired the Marienbader Höfe office property in Bad Homburg, a city close to the major German financial hub in Frankfurt, from Commerz Real on behalf of the Patrizia ‘Gewerbe-Immobilien-Deutschland III’ fund as part of a core-plus strategy.
The property is fully-let with an average remaining lease term of more than five years. Both parties have agreed not to disclose the purchase price.
Daniel Dreyer, Patrizia’s Head of Acquisitions Commercial, says: “We identified Bad Homburg as a city with a strong economic potential. As well as hosting international companies such as Fresenius, Hewlett Packard and Lilly Pharma, its population of around 53,000 inhabitants boasts the second-highest rate of spending power in Germany. The property’s excellent micro location between the train station and the city centre, diverse tenant mix and opportunities for further active asset management make this a very attractive investment for our clients.”
The nine-storey Marienbader Höfe property was built in 2000 for single-tenant use. In 2016 it underwent an EUR11 million refurbishment programme which converted the property into a multi-tenant building with 27,000 sq m of lettable space and 500 underground parking spaces. Current tenants include: The Deutsche Leasing Group, First Data and Fresenius. The building has been refurbished to a high standard with attractive architecture, a high-quality interior and offers flexibility for cellular, combination offices or open plan layouts.
Bad Homburg is situated to the north of Frankfurt just 15 minutes from Frankfurt Airport and 20 minutes to the Frankfurt’s central business district. Over 60 public transport connections run daily between the two cities.
Office space accounts for approximately one third of Patrizia’s assets under management. Recent transactions across Europe include the EUR 26m acquisition of the APEX House office complex in Edinburgh and two separate acquisitions in Munich. In addition, Patrizia’s portfolio of business parks in the UK was sold in the third quarter of 2017 for approximately EUR1 billion.