CCP 5, the core-plus perpetual fund advised by Tristan Capital Partners together with Investa Real Estate, has acquired a 79,200 m2 portfolio of eight office buildings located in seven established office markets in Germany for €147 mln from Cording Real Estate Group.
The portfolio consists of an office building in Hamburg, which forms the largest portion of the value of the transaction at around 25%. The other single assets are located in Cologne, Hannover, Braunschweig, Erlangen, Mannheim and Kassel. Investa Real Estate will act as asset manager to CCP 5.
Constantin Plenge, Executive Director, at Tristan Capital Partners, said: 'The acquisition of this portfolio concludes a record year for us in Germany, taking the total transaction volume of Tristan funds past the €1.0 billion mark. This portfolio was particularly attractive given that all of the offices are in attractice locations in primary submarkets with sub 3% vacancy on average. The buildings are of good quality and have been well managed to date and our focus will be on leasing up the remaining vacant space to further stablise the assets.'
Felix Jethon, Head of Fund Management, Germany, Cording Real Estate Group, added: 'The portfolio was acquired 2-1/2 years ago and through active asset management by our nationwide team and repositioning of some assets, we have seen a rise in occupancy rates, a 7% uplift in rental income and an increase of over a year in the average unexpired lease terms. This, in turn, allowed us to exceed our business plan targets, which were reached ahead of schedule, allowing an early disposal of the portfolio.'
This latest acquisition follows the news in October that the Tristan-managed EPISO 5 opportunistic / value-added fund had recently closed on three deals, including: a portfolio of five good quality office buildings in Munich (2 assets), Frankfurt, Dusseldorf and Hildesheim; an under-rented and well-located office building and land plot in the North Munich microlocation of Milbertshofen and a development site with the potential for 30,000 sqm of office and commercial space in Berlin’s up-and-coming Neukölln district.
Tristan and Investa were advised by Greenberg Traurig, PwC, Jones Lang LaSalle and SCHWAB.engineers. Cording Real Estate Group was advised by BNP Paribas Real Estate and Herbert Smith Freehills LLP.