Private investment house Ardian has acquired an office and commercial building in Hamburg, Barmbek from a retail fund managed by Quest Funds.
Financial details were not disclosed.
The asset, Q21 Offices, is centrally located in Barmbek in Hamburg Nord, and covers around 20,000 m2 of rental space across 21 listed historic buildings and 16 modern buildings. The complex has 299 underground parking spaces and 15 outdoor parking spaces.
The property was built between 2008 and 2013. Quest Funds concluded lease extensions for more than 2,100 m2 with denn's Biomarkt, Targobank and Budni drugstore in April 2021.
The area has a neighbourhood feel and encompasses 14 hectares of parkland, apartments and townhouses as well as healthcare, education, offices, retail and amenity facilities in close vicinity.
Roland Holschuh, managing partner at Quest Funds, said: 'As an asset manager, we are proud that our active management has contributed to increasing the attractiveness of the neighborhood and that we have also been able to achieve a very attractive overall result for our investors.'
The Ardian team plans to undertake extensive upgrading measures to reposition the property in the market and sustainably increase the attractiveness of the building.
Bernd Haggenmüller, senior managing director at Ardian Real Estate, said: 'Quartier 21 is ideally located in the vibrant district of Hamburg Barmbek. We see considerable development potential in this property, which we intend to realize through targeted investments.
'Quartier 21 fits perfectly into our investment strategy of acquiring and developing high-potential core plus and value-add properties in key European cities. Having already made successful investments in Munich, Berlin and Frankfurt in Germany, this transaction now marks our first investment in Hamburg. In our view, investments in office space in top cities continue to be attractive.
'Office properties will not become less important following the pandemic and changing work models, rather they will be designed differently to fulfill additional functions. As a real estate investor and asset manager, we are actively shaping this change.'