Inovalis Real Estate Investment Trust has completed the purchase of an office property in Kösching, Germany, as part of a 50/50 joint-venture arrangement with a global institutional investor. Inovalis REIT is a Candian-listed property trust that focuses on managing high-quality assets in Germany and France. The Kösching Property is a recently constructed modern office building and research & development facility with a gross leasable area of approximately 9,900 sqm. The property is fully occupied with a weighted average lease term of ten years and is anchored by a high-profile tenant, TKI Automotive GmbH, a company which focuses on developing new technologies for use in the automotive industry and is owned by German automobile manufacturer Audi along with Gigatronik. The deal went through with a €24.4m price rag and included a senior bank loan of €14m. The going-in cap rate is being put at around 6.9 percent.
“This asset was one of the forward purchase contracts the REIT entered into over the past 12 to 18 months,” said Khalil Hankach, Chief Investment Officer of Inovalis. “The current purchase price of €24.4m is significantly below the recent property appraisal of €27.5m.
