Conren Land acquires Media Tower in Dusseldorf (DE)

Conren Land acquires Media Tower in Dusseldorf (DE)

BNP Paribas REIM Germany and Cording Real Estate has sold the Media Tower property located at Dusseldorf Medienhafen to special fund CONREN Land. The high-rise was originally purchased in 2016 for the Real Value Fund, which BNP Paribas REIM Germany co-manages together with the Cording Real Estate Group. The fund’s manage-to-core approach proved particularly effective in tapping the potential of the property. After purchasing the high-rise, the fund repositioned it on the market and was able to reduce the office vacancy rate by over 50%. 

 

The Media Tower is a 64-meter high-rise encompassing about 9,000m² across 18 storeys. Roughly 400m² are dedicated to restaurant use on the ground floor with 7,600m² of office space on the upper floors. The building also houses about 800m² of archive space. The building’s occupants have access to 115 parking spaces located at the neighbouring property. The asset features a flexible layout that can be adjusted to meet specific tenant requirements. The purchase price was not disclosed.

 

Based on the IRR method we generated a yield of roughly 18% with this investment over the course of a four-year holding period. This is an excellent example of the potential to be found in the current market environment by taking an active management approach with a competent fund management team”, explained Claus Thomas, CEO of BNP Paribas REIM Germany. “That is why in the current low-interest environment institutional investors are showing considerable interest in value-add assets with the potential to be repositioned as core investments. In light of this, we have also decided to increase our equity capital target for the fund to €250m. We are currently negotiating the purchase of a new property to reinvest the capital made available by the recent sale. Further acquisitions are planned”.

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