German fund manager, Union Investment, has purchased an under-construction office complex in the city of Bonn.
Selling the 60,000 m2 property on Bundeskanzlerplatz, was Art-Invest Real Estate, a real estate developer and manager with €6 bn AUM. The price has not been disclosed by the parties. Under the terms of the deal, Union Investment will assume responsibility for the property upon completion, which is earmarked for 2022. Until then, Art-Invest will retain full responsibility for the development comprising three buildings, including a skyscraper.
When completed, the three offices will be linked by a square with shops and restaurants. The skyscraper will total 28 floors, with around 32,000 m2 of rental space. A 950-space underground car park is already under construction.
The main tenant in the new complex, named Neuer Kanzlerplatz, will be DB Privat- und Firmenkundenbank AG, which was formed as a result of a merger between Postbank and parts of Deutsche Bank. The firm will bring all of its existing offices in Bonn together in the new location. Union Investment is acquiring the planned office complex for three of its actively managed real estate funds.
Arne Hilbert, managing director of Art-Invest Real Estate, believes Neuer Kanzlerplatz will be in good hands in the future: 'The people of Bonn have strong feelings and high expectations with regard to this major project, so it’s important for us to be responsible for all aspects of development and to implement it right through to completion. We are delighted to be working in partnership with Union Investment as a reliable and long-term investor,' he said.
Alejandro Obermeyer, head of investment management DACH at Union Investment Real Estate GmbH, said: ‘We consider Bonn to be one of the most dynamic secondary locations in Germany. The vacancy rate in the office segment is just two per cent and prime office rents have increased by around 55% over the past 10 years. Prime rents in Bonn have now reached the same level as Cologne.
‘Overall, the conditions are excellent for a successful long-term investment. With a wide range of real estate funds focusing on Germany, we are able to structure major investments of this kind in a number of ways. This allows us to create flexible, reliable solutions for our transaction partners.’