German listed property landlord TLG Immobilien said on Monday that it has acquired the Office 3001 scheme in the Altona district of Hamburg for a total investment of €59.5 mln, reflecting a rental yield of 6.1%.
The seller is the Orion European Real Estate Fund IV, managed by Orion Capital Managers. The transaction was brokered by Cushman & Wakefield.
The office building was completed in 2001 and modernised most recently in 2015. With around 23,300 m2 of lettable area and 452 parking spaces, the property has an EPRA occupancy rate of 85.2% and generates annual rents of €3.4 mln. The asset is mainly let to Reemtsma Cigarettenfabrik with a weighted average lease term (WALT) of 6.6 years.
'In light of the modern standard of the building and the dynamic office property market in Hamburg, we are confident that we will be able to tap the property’s renting potential,' said Niclas Karoff, member of the management board of TLG Immobilien.
Closing of the deal is planned for July 2018.