Meyer Bergman sells mixed office and retail asset in Hamburg to Values Real Estate
Private equity real estate investment manager Meyer Bergman has completed the sale of Montblanc House, Hamburg to Values Real Estate, formerly DC Values, for an undisclosed sum.
Meyer Bergman acquired the 7,200 sq m property in late 2018 on behalf of its third value-add closed-ended fund Meyer Bergman European Retail Partners III (MBERP III).
The asset is anchored by fashion chain Weekday, homeware retailer Granit and various gastronomy concepts as ground-floor tenants. The six upper floors are fully occupied by a mix of office tenants.
The sale of Montblanc House follows a number of successful transactions by Meyer Bergman in recent months despite the challenges posed by lockdown and Covid-19.
Last month, Meyer Bergman sold TOKO, a former corporate headquarters in Paris transformed by Meyer Bergman into a mixed residential and commercial development, to DWS and La Française REM.
The residential element had been pre-leased to European co-living pioneer Colonies, and TOKO will be the firm's first Parisian site, while the office element was pre-leased to Webhelp, a Business Processing Outsourcing specialist. DWS has acquired the office element, La Française the residential element.
Following today’s disposal, Meyer Bergman’s German portfolio includes an office asset in the Neukölln district of Berlin, residential-led assets in the Frankfurt city-region, a retail asset in central Potsdam. The investment manager is also looking to grow its exposure to last-mile logistics facilities in Germany through its urban logistics platform Crossbay.
Marcus Meijer, CEO of Meyer Bergman, says: "Despite the uncertainty caused by Covid-19, we have managed to complete a number of transactions during this uniquely challenging period, including the disposal of three high quality mixed-use assets, most recently in Hamburg.
“Thanks to the strength of our local team in Germany, we were able to identify an asset with strong reversionary potential, which the new owners of Montblanc House will be well positioned to take advantage of.
"Real estate as an asset class remains attractive to investors, and while coronavirus will accelerate existing trends impacting the way people work and shop, fundamentally there will always be demand for fixed workspace and physical retail, especially in core cities with strong underlying fundamentals such as Hamburg."
Located in the hip Sternschanze district of Hamburg, Montblanc House sits in close proximity to the landmark Rote Flora cultural centre, which hosts a concert stage, café and community spaces.
Montblanc House is also near Sternschanze station, giving occupiers access to Hamburg’s overground and underground transport networks.
Sternschanze, which is famous for its nightlife and entertainment, has seen the introduction of new premium retail concepts from both local and international brands in recent years, boosting the reversionary potential of Montblanc House.
As the second largest city in Germany, with a population of over 1.8 million, Hamburg is forecasted to reach a population of close to 2 million by 2030.
The city has above average spending power and economic growth is predicted to exceed two percent per annum from 2021 to 2024 according to Oxford Economics.
Henning Zimmermann, managing director, Germany, at Meyer Bergman, says: "Already one of the most exciting neighbourhoods in Hamburg thanks to its thriving culture and leisure scenes, Sternschanze has also emerged as a new commercial hub city thanks to an influx of new businesses and rising footfall. Together, these have made the area more attractive to occupiers and helped boost commercial rents.
"Germany remains a key target market for Meyer Bergman, boasting a number of strong city-regions and a thriving economy. As with elsewhere in Europe, we see a huge opportunity to repurpose existing assets that need repositioning as a result of changing consumer habits stemming from Covid-19 and lockdown."