DEGI Deutsche Gesellschaft für Immobilienfonds mbH acquires the prestigious 'main post office' in Erfurt's Anger shopping and business area for a total investment of approximately €55 million for DEGI GERMAN BUSINESS.
This semi-institutional fund specifically caters to the needs of institutional and wealthy private investors and targets opportunities on the German property market. The equity capital required for the acquisition will be called from investors through a cash-call procedure immediately before the possession is transferred in August 2007. The fund will then have more than 10 properties with an investment value of around €187 million in six major cities and regional centers in Germany. The seller is DIC Deutsche Immobilien Chancen AG & Co. KgaA. "The transaction was completed in less than three weeks, which highlights the professionalism shown by both the buying and selling parties," said Thomas Linker, Managing Director of DEGI.
The striking and ornately decorated neo-Gothic building was the main post office for the capital of Thuringia for 100 years before being revitalized in 2007 as an office and retail center. "The modern conversion of central buildings and areas not only creates a new dynamic in the inner cities, but also opens up interesting investment opportunities for property investors, as the main post office in Erfurt shows," explains Linker. The five-story property on Anger Platz has a total rentable area of 13,900 m², of which 4,508 m² is retail space on the ground floor, which is leased entirely to well-known and creditworthy tenants, such as Deutsche Post AG, Görtz, dm Drogeriemarkt and Marc O'Polo. Deutsche Telekom AG is the largest tenant of the office space. The property is located at a key tram intersection in the center of the regional capital, which has over 200,000 inhabitants, and is only 5-minutes' walk from the main railway station.