UK-based Cording Real Estate Group has bought a portfolio of 10 German office assets for €143 mln.
Cording purchased the portfolio on behalf of a joint venture between Danish fund manager Sparinvest Property Investors and Esas Properties, part of Turkish-based Esas Holding.
DIC Asset was the vendor of the properties, which are located across eight cities. The total lettable area is around 100,000 m2, of which more than 90% is office space. The entire portfolio is 97% let.
Two of the assets are located in Hamburg and Cologne, with the remainder in Ulm, Kassel, Brunswick, Mannheim and Erlangen. Tenants include quoted companies including Siemens, Deutsche Telekom, BASF and Nokia Solutions Network.
Rodney Bysh, CEO of Cording, said: '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.'
DIC said the sale was part of its ongoing portfolio optimisation and brought its revenues for 2017 to two-thirds of its year-end target.
'The purpose of this forward-looking sale in a favourable market environment is to streamline our portfolio in a sustainable manner. On top of that, we already covered two thirds of the way toward the sales target we announced for 2017 with this transaction,' said CEO Aydin Karaduman.
Herbert Smith Freehills acted as legal advisors to Cording, while BNP Paribas Real Estate and CMS Hasche Sigle advised DIC on the transaction.