HIH Invest Real Estate (HIH Invest) has acquired a new tenant for its Löwentorbogen 11 fund property in Stuttgart: The City of Stuttgart is leasing over 5,300 square metres of office space on three floors for its vehicle registration and driving licence office for 20 years with an option to extend. The authorities will move into the space in January 2025. The six-storey, H-shaped office building in the Bad Cannstadt district was completed at the beginning of 2013 and offers 11,297 square metres of office space spread over six floors. The previous sole tenant, Deutsche Telekom, will move out of the building at the end of 2024.
“We are very pleased to have found a suitable new tenant in the City of Stuttgart,” says Markus Leuchte, Head of Letting Frankfurt/Stuttgart at HIH Real Estate. “Thanks to its flexibility, the existing single-tenant property can be utilised very well by several tenants in the future. We are already in talks with several interested parties for the remaining space.”
The office property is located in the Pragsattel area between Löwentorstrasse and Pragstrasse. The main railway station can be reached in around eight to ten minutes via several underground lines and the Pragsattel and Löwentor stops. The main railway station can be reached by car via the B14 in around ten minutes and the airport in around half an hour. The property includes 212 parking spaces in the underground car park and outside, of which the registration office has rented 98 indoor and 19 outdoor parking spaces.
“The City of Stuttgart opted for the property, which is as good as new, because it not only offers the right space and ideal transport connections for the driving licence office, but is also well suited for public traffic and is also barrier-free,” adds Karl Peters, Senior Asset Manager at HIH Real Estate. “As an asset manager, we have succeeded in finding an attractive and sustainable solution for our tenant as well as for the fund in a challenging market environment. A partnership-based and creative approach, taking into account the changing market requirements and the prospective tenant profile, is a matter of course for us.”
The property in Löwentorbogen is one of currently seven properties in a special AIF launched by HIH Invest in 2014. Since its launch, the core-plus fund has invested over 350 million euros in office, retail and logistics properties in German A and B locations and generated an above-average distribution yield of seven per cent for investors from the insurance, pension fund and banking sectors.
Colliers acted as the tenant’s agent.
