Commerz Real AG, created by the recent merger of Commerz Grundbesitz Gruppe (CGG) and CommerzLeasing und Immobilien AG (CLI), just acquired six office properties in Vienna's 'TownTown' urban development project. The properties are earmarked for one of Commerz Real's open-end public property funds, hausInvest europa.
"The first acquisition and preliminary negotiations were conducted by CLI. During the later process stages, CGG and CLI joined forces and successfully completed the acquisition," as Hans-Joachim Kühl, Management Board member of Commerz Real AG and in charge of real estate acquisition, elaborates the background of the transaction.
The deal was signed last week in Vienna. The investment volume for the properties, which cover a gross lettable area of about 41,000 m², totals approx. 97 million.
The real estate is sold by the urban project development company, Immobiliendevelopment Wiener Stadtwerke BMG and Soravia AG (IWS). These companies are also handling the floor-space marketing. Following the completion of the buildings (scheduled for 2008 and 2009, respectively), Commerz Real will take over the complex with a 75% tenancy.
'TownTown' includes a total of 21 office buildings with an aggregate floor-space of 130,000 m² Tenants will mainly be municipal authorities and institutions. The complex is being raised in the Erdberg district, one of Vienna's most important and most dynamic urban development areas. Office space for 45,000 new jobs will be created here in the years to come. The development is boosted by the excellent traffic connections to downtown Vienna and Schwechat Airport. In addition, the area has direct access to the underground system.
"We are pleased to be participating, through Commerz Real, in a project so ambitious and so important for the continued urban development," says Kühl. "This acquisition helps us to further expand our real estate commitment in Vienna. The portfolio of our hausInvest europa fund already includes three office buildings in the city, among them the Galaxy 21 high rise on Praterstrasse. Also, the transaction has an extraordinary significance for us, as it showcases the successful buying performance of CGG and CLI, who just merged to become Commerz Real. In the future, we will use this basis to seize investment opportunities on the international real estate markets in even more effective ways."
Source: Commerz Real