GE Real Estate Germany has acquired 100% of a German specialty property fund ('Immobilienspezialfonds') managed by by iii-investments for €420 million. The Fund's portfolio comprises 12 office properties across western Germany, located in its major financial centers, including Frankfurt, Munich, Hamburg, Dusseldorf, Stuttgart, Bonn, and Karlsruhe.
The properties,provide a total of 150,000 m² of office space, with a strong investment-grade tenant base and long-term leases.
This is GE Real Estate's first investment in a regulated fund product in Germany. The transaction offers GE access to an attractive office portfolio and will provide a base vehicle for future investments.
Rainer Thaler, Managing Director of GE Real Estate Germany, commented: "This acquisition, which is the first sizeable commercial real estate transaction that we are making in Germany, underlines our strategy for growth. In doing so, we have continued to grow our German portfolio, following a successful run of acquisitions throughout 2006, in the residential, healthcare and commercial sectors.
"We are also pleased to have made our first investment in the regulated funds market, where we see exciting growth prospects. As we continue to build our track record, we look forward to expanding our portfolio across the key strategic markets and exploring new sectors."
GE Real Estate was advised by Colliers Property Partners on commercial matters, whilst Freshfields and Pöllath and Partners acted as legal advisors.
Source: GE Real Estate
