German property firm Godewind Immobilien has acquired an office property in Düsseldorf for €140 mln.
The office complex, known as Herzog-Terrassen, is situated in downtown Düsseldorf and comprises around 55,700 m2 of space and some 1,000 underground parking spaces.
According to Godewind, the vacancy rate of the property is currently around 45.6%, with an annualised rental income of €6.7 mln and an average remaining lease term of 6.5 years. This equates to a gross initial yield of around 4.8%.
In addition to banks and retailers, the anchor tenants include various companies from the service and financial industry. Godewind said it planned to execute an active asset management strategy to improve the property's ratios by 2021.
Godewind has calcuated that the improvements should enable the property to generate about 60% higher annualised rental income with full letting of more than EUR 11 mln.
The company said that its overall portfolio - boosted with some 740 mln of acquisitions since October - comprised a purchased vacancy rate of around 28%, creating significant uplift potential.
The vendor of the asset was advised by JLL.