GxP German Properties (GxP) has acquired multiple office properties for its portfolio. The value of these properties is approximately €30 million. The transfer of ownership for the properties is slated for November.
Two office properties are centrally located in the Friedrichstadt district of Dresden, the capital of Saxony – a metropolis with over 500,000 residents. Together, they have a total rental area of about 14,600 square metres with good public transportation connections. The properties are nearly completely let with a vacancy rate of just above four percent. These properties are being let to tenants with strong credit ratings from various industries, such as telecommunications, insurance and infrastructure. The weighted average unexpired lease term (WAULT) is about five years.
The second office building is located in the economically robust Rhine-Main district in Erbach (Hessen). The total area of the property is roughly 15,000 square metres. The property has a vacancy rate of 17 percent and therefore offers good opportunities for further value enhancement through active in-house asset management by GxP. Tenants primarily include public sector companies with long-term lease contracts and solid credit ratings. Accordingly, the property has a WAULT of close to 9 years and therefore provides secure, long-term cash flows. The entire property was comprehensively modernized in 2000 – including renovations. As a result, the property is in good condition and requires only minimal investments.
Johannes Meran, CEO of GxP: “Thanks to our tight network, we can regularly identify properties with attractive value enhancement potential. The current acquisitions are a further step in terms of expanding our portfolio of lucrative commercial properties. In addition, we will use our experience in the field of asset management to leverage further value enhancement potential for all three properties.”
With its headquarter in Berlin, GxP German Properties focuses on the Acquisition, Ownership and Management of office and retail properties in Germany. The investment strategy focuses on attractive commercial properties in the Core+/Value add segments in metropolitan regions and selected mid-sized cities in Germany. The company’s strategy is to leverage significant appreciation potential through proactive portfolio management whilst safeguarding sustainable rental revenues at the same time. To this end, it draws on both its many years of experience in the property market and its extensive network. Together with institutional investors, the company has invested in a portfolio of high-value properties worth around €180 million and manages the properties as part of its asset management business.
