Cording buys 10 office properties from DIC Asset AG for €143 million04 April 2017
Cording Real Estate Group, the Northern European real estate investment and asset management firm, acting upon instructions from a joint venture between the Danish fund manager, Sparinvest Property Investors, and Esas Properties, a group company of Esas Holding of Turkey, has acquired a portfolio of German office properties. The vendor of the package of properties, which changed hands for around €143 million, is DIC Asset AG.
Cording acted as investment advisor on the transaction and is taking over the asset and property management of the portfolio.
The portfolio comprises of 10 assets in eight different German cities. There is one property each in Hamburg, Cologne, Ulm, Kassel and Brunswick (Braunschweig), and two each in Mannheim and Erlangen. The total lettable area of the portfolio is around 100,000 sq m, of which more than 90% is office space. The entire portfolio is 97% let.
The tenants include well-known quoted companies, including Siemens (Erlangen), Deutsche Telekom (Brunswick), BASF (Mannheim) and Nokia Solutions Networks (Ulm).
Rodney Bysh, Cording's Chief Executive Officer, explained the reasons for the investment: "The German office market is attractive, because at present there are only a few new projects being developed. We, therefore, anticipate continued rental growth. In addition, with its local offices, Cording is well placed to manage the properties from close by. This applies in particular to the technical asset management, in which Cording has considerable in-house expertise.”
Herbert Smith Freehills acted for Cording in the legal aspects. BNP Paribas Real Estate and CMS Hasche Sigle facilitated the transaction on behalf of DIC.