Tristan’s Curzon Capital Partners 5 Long-Life Fund (CCP 5 LL) has acquired an office property in Düsseldorf from London-based private equity group Floreat Real Estate for an undisclosed sum.
The recently refurbished Parseval Square office property comprises 26,675 m2 and is located in Düsseldorf north, the city's largest office sub-market. The asset is approximately 78% let to 13 international and domestic tenants with a weighted average lease term of 2.4 years.
'This is the second investment CCP 5 has made in Germany, which continues to be a core market for us. Germany continues to outperform its Eurozone peers, with submarkets such as Dusseldorf proving increasingly attractive to an international investor base,' said Ali Otmar, senior partner at Tristan Capital Partners.
'We are seeing pockets of value in the office market in particular, where there is a large amount of ageing stock and substantial demand for high-quality space. Our aim is to capitalise on this by working closely with Barings, drawing on their relationships with existing tenants, their knowledge of the asset and the Düsseldorf market, to lease up the remaining vacancy at Parseval Square,' Otmar added.
'This sale demonstrates our ability to turn around significantly underperforming assets in short timeframes, delivering returns which greatly exceed market norms,' said Greg Davison, investment & asset management associate at Floreat Real Estate.
'A targeted CAPEX plan and re-branding exercise were implemented to help accelerate the leasing pipeline. This strategy proved to be successful, with five new tenants signing in quick succession, facilitating an early sale.'
Savills, who advised the vendor, had previously advised the seller when Floreat acquired the building in 2016.
'With its central location in the heart of Europe and a highly developed infrastructure, Düsseldorf is ideally positioned to continue to prosper as a business location and is drawing increasing international interest,' said Chris Gillum, director of European Cross Border investment at Savills.