Cording sells bicycle center and office building in Mannheim02 August 2019
Frankfurt am Main, 2 August 2019 − The Cording Real Estate Group (Cording), part of the Edmond de Rothschild Real Estate Investment Management platform, acting on behalf of a joint venture with Patrizia Multi Managers and a client of Cording, has sold a retail warehouse centre in Mannheim.
The property, situated at Casterfeldstrasse 40–44, provides a total lettable area of 11,200 square metres. 9,700 square metres of this is retail accommodation, with the remaining 1,500 square metres in an office building belonging to the asset. The property is fully let, to seven different tenants. The weighted average unexpired term of the existing leases (WAULT) is around 7 years. The property includes 263 surface parking spaces.
The long-term anchor tenant, Zweirad-Center Stadler Mannheim GmbH, is a top covenant that alone occupies 9,700 square metres. It integrates a "Subway" restaurant.
The retail warehouse centre is situated in the Neckarau district, which has a population of over 31,000, some 5 kilometres to the south of the city centre and close to the SAP Arena, the Maimarktgelände exhibition site and the access to the A6 motorway. It boasts excellent public transport connections and is less that ten minutes from Mannheim central station.
Felix Jethon, Head of Fund Management Germany comments: "During the short holding period, around two years, we succeeded in fully letting the property and increasing the income. In the scope of a portfolio streamlining, we have taken advantage of the currently favourable market phase for the sale, in order to achieve an IRR for our investors that is well into double digits".
Cushmann & Wakefield advised Cording on the commercial aspects of the transaction. Legal advice was provided by Fried, Frank, Harris, Shriver & Jacobson LLP.