The real estate investment management company Corestate has acquired the new office construction project “Augsburg Offices” for a closed-end public AIF. The Corestate subsidiary Hannover Leasing will act as the capital management company and will also provide asset management services for the property. With a total investment volume of approximately EUR 46.6 million, the transaction took place within the scope of a forward purchase. Completion of the property is scheduled for the fourth quarter of 2021. Sales are slated to begin soon.
Tobias Gollnest, Chief Investment Officer DACH at Corestate said, “Augsburg is the third-largest city in Bavaria. Located in the Munich Metropolitan Region, its importance as an affordable place to live, work and study is constantly growing. In Augsburg Offices, we have succeeded in acquiring a sustainable, profitable investment property for the AIF that will offer investors attractive returns. In doing so, we are once again underscoring our first-rate regional market access.”
Laurent Rucker, Head of Real Estate Investment at Hannover Leasing said, “We are delighted to acquire Augsburg Offices. The property features an excellent regional location and outstanding quality, thanks in no small part to its sustainability focus that aims for LEED Gold certification. What is more, it offers a long-term cash flow profile and an excellent, mixed and risk-diversified group of tenants. Augsburg’s office market is increasingly gaining importance as a ‘satellite market’ of Munich.”
The new Augsburg Offices campus features a gross lettable area of just under 8,650 m² and an underground car park with roughly 135 spaces (plus 10 outdoor spaces). The developers aim to obtain Gold certification in line with the Leadership in Energy and Environmental Design (LEED) green building rating system. With 10 current tenants on long-term leases from industries such as publishing, IT, automotive, real estate project development, dentistry, private equity and occupational therapy, the multi-tenant property with fixed terms of 7.5 to 15 years offers excellent tenant diversification. The largest tenant is the Weltbild D2C Group.
The property is located close to the city centre and is well connected to private and public local and long-distance transport options. The A8 motorway is roughly 10 minutes from the campus by car. Thanks to a variety of public transport connections (tram and bus), the city centre can also be reached in roughly 10 minutes.
The sale of the property, a joint development of brixx projektentwicklung GmbH and a Munich-based family office, was overseen by ELS 9 Büro GmbH. Savills Immobilien Beratungs-GmbH brokered the off-market deal.
