Canada's Dream Global REIT, the Europe-focused industrial and office investor, has inked a deal to sell a site in Offenbach am Main for €35.5 mln, after working to rezone the site from office to residential.
Located in the greater Frankfurt area, Dream Global said that the sale price represented an unlevered return of more than 20% over the 8.5 year holding period.
Dream Global said it had 'improved' the 11,900 m2 site with the addition of a 10,600 m2 mixed-use office building formerly leased to Deutsche Post. The firm vacated the premises in July 2018.
Working with the local planning authorities, the REIT said it developed a concept providing for over 25,000 m2 of mixed-use residential development. The selling price represents a value of €1,375 per m2 of gross leasable area.
'This transaction underscores our approach to generating value for our unitholders and is consistent with our strategy to deliver organic growth through smart asset management while leveraging the expertise in our platform,' said Michael Schwoebel, the REIT's head of real estate for Germany.
'This property also highlights the value creation possibilities in our redevelopment portfolio, an extensive income-producing land bank comprising properties with upside potential from redevelopment, intensification, and conversion to alternative uses,' Schwoebel added.
Dream Global sais it would reinvest the net proceeds from the sale in acquisitions across its target markets