Diok swoops on German offices

Secondary-city investment specialist Diok RealEstate has acquired two office properties in Germany worth €46.9 mln.

The assets are located in Hallbergmoos (Bavaria) and Offenbach (Hessen), and are both fully let, Diok said.

The Hallbergmoos property is situated in the direct vicinity of Munich Airport, comprises 15,227 m2 and is fully leased to various tenants on a long-term basis, with the two anchor tenants described as 'leading companies in the IT sector'.

The property has a weighted average remaining lease term (WALT) of 4.6 years: the annual net cold rent is more than €1.76 mln or €8.94 / m2. The building was constructed in 1999 and is in excellent condition.

The property in Offenbach comprises around 9,200 m2 of rental space and is also almost fully let to various tenants. The largest tenants are a non-profit association and Deutsche Post. The property currently generates an annual net rent of approximately €677,000 or €6.08 / m2. Diok said the comparatively low rent meant the possibility of repositioning.

The acquisitions expand the size of the firm's portfolio to €249.75 mln, according to Diok. Further properties with a value of €52.5 mln have already been notarised, and should be completed in the first quarter of 2020.

'We have exceeded our growth targets for 2019,' said Markus Drews, member of the board of Diok.

'A still full deal pipeline allows us to look forward to the new year with high expectations. Our aim will be to at least double our portfolio in 2020 and to acquire further high-yield properties,' Drews added. 'We are becoming increasingly well known in the market for office properties in secondary markets.'

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