Frankfurt-listed property firm TLG Immobilien has acquired a fully occupied office complex in Bonn for €88.8 mln, while announcing the divestment of around €118 mln of retail assets across Germany.
‘These two transactions will reduce the amount of management work required by our portfolio and lead to our portfolio being concentrated in promising locations,' said Jürgen Overath, COO of TLG Immobilien. ‘We will reinvest some of the proceeds from the sales in the acquisition in line with our strategy of generating value.’
The office complex Westside Office in the Weststadt district of Bonn was purchased from a US family office, with a weighted average unexpired lease term of six years. Fully let to a German listed firm and a public authority, the property generates around €5.3 mln of rent per year.
According to data from local firm Larbig & Mortag, the Bonn office market had the lowest vacancy rate of all the B-rated cities in Germany at just 1.8% over the first half of 2018.
The disposal of a portfolio of 29 small retail properties, the majority of which are situated in Saxony-Anhalt and Lower Saxony, was notarised in March 2019. The buyer was Irish real estate investment company Greenman, an active investor in Germany.
TLG was advised on legal matters by P+P Pöllath+Partners, while Greenman was assisted by law firm White&Case.