Halverton Real Estate Investment Management has acquired an office and a logistic property in Dortmund for its GOP and EB8 funds. This is the first time that Halverton has bought properties in Dortmund.
The 'Alter Hellweg' office, acquired for the GOP fund, comprises two separate properties, which were built in the early 90s. The purchase price amounted to €5.5 million. The three-story property has in total approximately 6,100 m² and offers 70 parking spaces. The buildings are let 95% to ten companies. The two largest tenants are the Federal Network Agency and Datev. The property is located on the outskirts of Dortmund, close to the university and the Dortmund Technology Park. Avantage was the acting agent for the transaction.
For the EB8 fund Halverton acquired the 'Feldbachacker' logistic facility for €3 million. The property, which is located on the Dortmund Kley Trading Estate, is 42,000 m² large and has only been developed to approximately a quarter. Further development of the property is therefore possible. The building with an area of 10,100 m² consists mainly of ground-floor level storage facilities attached to a two-story office building. The property was constructed in several stages until 1994 and is 93% let. Logistics company Schenker is the sole tenant. The initial net yield amounts to 9.4%. The Volksbank Dortmund-Nordwest eG acted as agent in the transaction.
Dortmund is the largest town in North Rhine-Westphalia and a growing logistics location at the gates of the Ruhr area. The properties are situated two kilometers from the A45 and A40 motorways at the most and thus offer connections to the German and European motorway networks. The airport is in the immediate vicinity. Furthermore, Dortmund benefits from a railway link and a waterway connecting to European seaports.
German Office Partnership (GOP)
The GOP fund invests in office property in Germany with a timescale of seven years and a 7% distribution yield p.a. With the acquisition of the properties in Dortmund, the investment phase has been completed. The portfolio consists of seven properties in Bremen, Dortmund, Hanover, Leonberg, Ludwigsburg, Mörfelden-Walldorf near Frankfurt and Ratingen. The fund volume amounts to approx. €130 million.
EB8 is Halverton's pan-European distribution vehicle and invests in high-yielding logistic and distribution warehouse properties across Europe. The EB8 will invest a total of €1 billion in Germany, Denmark, The Netherlands, Finland, Sweden, Austria and Switzerland. Approximately half this amount will be assigned to Germany. EB8 is actively seeking properties of €225 million in good to strong locations let to a limited number of tenants. Initial yields should be 7.5% or higher and the properties may be subject to short leases.