AEW acquires Wiesbadener Palais
AEW, a real estate asset manager, has acquired Wiesbadener Palais, an office building in the Hessian state capital, on behalf of a German pension fund.
Centrally located, the five-story, 4,700 sq m office building was previously owned by NORSK Deutschland AG and IFM Immobilien AG. The Hessian Ministry for Digital Strategy and Development and HRA Pharma Deutschland are anchor tenant and will be fully let once the Ministry takes occupation at the start of 2020.
Alongside the acquisition of Wiesbadener Palais, the surrounding area is undergoing renovation and regeneration with the construction of over 40,000 sq m of residential and commercial space. This includes the construction of an Adina Hotel and residential tower with 22 floors. The overall project is to be completed by 2022.
Tobias Schnurer, Investment Director at AEW, says: "The "Wiesbadener Palais" is positioned in an absolute top location within Wiesbaden. As the new headquarters of the Digital Ministry, with a secured long-term lease, the asset provides an attractive risk/return profile for our client.”
Thomas Schulze Wischeler, CEO of NORSK Deutschland AG, representing the owner IFM Immobilien AG, comments: "We are delighted to have found in AEW a renowned investor for a prestigious trophy asset. Wiesbaden benefits not only from its proximity to the financial metropolis of Frankfurt, but also offers a high quality of life. The KURECK and the "Wiesbadener Palais" are having an influential impact on this prospering premium location.”