UBS Asset Management completes double office acquisition in Germany
UBS Asset Management's (UBS-AM) Real Estate & Private Markets (REPM) business has acquired two predominantly public sector-tenanted office properties in the German cities of Hamburg and Wiesbaden for a combined price of approximately EUR50 million.
The two properties were acquired off-market and in separate transactions on behalf of clients of UBS-AM.
The Hamburg asset is centrally located in the heart of Hamburg’s City Süd district. The seven-story property, named ‘Südetagen’, comprises 10,055 sq m of lettable floor space along with an underground car park. The asset has been acquired fully let with a local public administration accounting for the majority of rental income. City Süd has proved to be one of Hamburg’s strongest commercial and office sub-markets in recent years, strategically located between the city center and the HafenCity business district. Südetagen occupies a prominent corner position in close proximity of excellent transport infrastructure. The asset was acquired from Kriton Immobilien LLC, which managed the asset on behalf of Litos Immobilien PLC, a majority holding of Provinzial Rheinland Versicherungen.
The second property is located in Wiesbaden, the capital of Hesse, c30 km west of Frankfurt. The recently refurbished asset offers 3,281 sq m of office space spread over six floors along with 80 parking spaces and is fully occupied by a German government tenant. The office is centrally located on Viktoriastr, a short walk from Wiesbaden’s mainline train station. Wiesbaden is an established hub for German public authorities while the city also attracts a high volume of international companies, with many choosing it as their European headquarters.
Peter Rocker, Head of Acquisition & Disposition for Austria and Germany, UBS-AM Real Estate & Private Markets, says: “While the world currently faces a challenging backdrop, quality office properties located in strong economic regions and providing high income security offer a rare opportunity for us to deliver resilient returns for our clients and we have every confidence in the prospects for this type of asset over the long term. Both properties offer highly defensive characteristics combined with attractive growth prospects, making them ideally suited for long-term holds.”
Jones Lang LaSalle advised UBS-AM on the Hamburg transaction.