We have sold a portfolio consisting of three office properties in Berlin, Hamburg and Düsseldorf to CLS Holding plc. The sale price is €89.7 million. The three properties offer a total lettable area of approximately 32,000 square meters with 93 percent occupancy. We have added value to the properties in recent years through restructuring, refurbishment and new lettings.

We are pleased that we have been able to successfully stabilize three properties and bring them to the market despite the currently prevailing heightened uncertainty in the market. For all three properties, we have achieved a sustainable increase in value through targeted refurbishment and revitalization through our active asset management approach.

The property at Hansaallee 299 in Düsseldorf, which was built in 2003, is the largest property in the portfolio with an area of around 16,000 square meters. We were able to reposition the property in the market through its active asset management and a high-quality redesign of the existing foyer to create a light-filled entrance. In December 2019, 2,500 square meters were handed over to real.Digital, operator of one of Germany’s largest multichannel portals. This tenant further added to the attractive mix of sectors and achieved full occupancy at the time of sale. The property is located directly in the up-and-coming Seestern business district with optimal transport links to Düsseldorf’s main train station (20 minutes) and the airport (30 minutes).

The Berlin property at Storkower Strasse 132 in the Prenzlauer Berg district has around 6,100 square meters of rental space, all of which is currently occupied. The average remaining lease term (WAULT) is over eight years. Since its purchase in 2018, We have extensively remodeled the property and was able to sign new leases for 3,600 square meters in 2020. Overall, the company has doubled rental income since purchase from €550,000 to circa €1.1 million at the time of sale. With the creation of a 250-square-meter roof terrace, the building will have yet another attractive focal point for tenants in the future.

The Hamburg property at Wendenstrasse 408 is an office building with a lettable area of around 9,700 square meters and 191 parking spaces. As a dynamic office location, Hamburg City South offers good development prospects. In addition, Wendenstrasse is the city’s largest network infrastructure node with a large number of data centers. At the end of 2020, we were able to announce a long-term new lease to two data centers. A new concept plan for the construction of high-quality loft space with industrial appeal has also been drawn up for the property.

The properties were marketed by Cushman & Wakefield in Düsseldorf, BNP Paribas Real Estate in Berlin and JLL in Hamburg. The transaction is being supported through Jenckel Law, BrandBerger, Mocuntia Real Estate Advisors, PKF, and ALR on our side and is expected to close by the end of Q2 2021.

Abstract:

• Portfolio with a total lettable area of around 32,000 square meters in Berlin, Hamburg and Düsseldorf
• Sales price of 89.7 million euros
• Sustainable stabilization achieved through refurbishment and new tenancies