DEGI acquires diversified German portfolio for the Business-Fonds (DE)

The property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH has purchased seven properties in a package from IVG Institutional Funds GmbH for a total investment volume of around €155 mln.

The Kennedy House in Düsseldorf.

The portfolio is regionally diversified. Besides properties in the investment centres of Berlin, Hamburg, Munich and Düsseldorf, the major regional locations of Bonn and Nuremberg are also represented. In terms of utilisation categories for the approximately 60,000 m² of total area in the portfolio purchased, office space predominates with 77%, followed by logistics (14%) and retailing (9%). The portfolio excels in terms of a high letting ratio of 95% and very low ages of the buildings concerned. All the properties are situated in good or very good locations, and were built after 2000. The largest property in this "Sunshine" portfolio is the "Kennedy House" in Düsseldorf, which was awarded the German Architectural Prize in 2005. The portfolio also includes the former embassy buildings "Holland House" and "Canada House" in Bonn, meanwhile converted into high-quality office buildings and predominantly let to the Deutsche Post AG.

The portfolio is destined for the two funds of the DEGI BUSINESS family, specially focused on the needs of affluent private investors and institutional investors. Six properties are earmarked for the DEGI GERMAN BUSINESS fund, whose property assets have thus risen to €308 mln. The building of the former Dutch embassy in Bonn has been assigned to the DEGI GLOBAL BUSINESS fund, whose property assets are thus increased to €423 mln. Before the purchase, the investment funding was obtained from the investors in both funds under a cash-call arrangement.

Source:Allianz Global Investors

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