A fund set up and managed by Hines has acquired two assets in Germany, Kö-Quartier in Düsseldorf and Kronprinzbau in Stuttgart. Kronprinzbau was sold by Credit Suisse. The investments are intended to remain a strategic long-term part of the fund portfolio. In this context, Hines Immobilien GmbH is responsible for the asset and development management of the properties.
Kö-Quartier, a complex consisting of seven buildings with more than 55,000 m² of office and retail space, as well as approximately 420 parking spaces, features a front measuring approximately 140 meters on Königsallee, the best office and retail location in Düsseldorf. The existing buildings are leased on a long-term basis to tenants such as Deutsche Bank AG, Linklaters, Bank of Tokyo, and Lang & Schwarz Wertpapierhandelsbank AG. Over the course of the next years, the five existing buildings along Königsallee will be technically modernized. In addition, the development of new office buildings on Breite Straße and Benrather Straße is planned to be completed by 2017.
Kronprinzbau, a mixed-used building located in the immediate vicinity of the Königstraße shopping mile, fits harmoniously into the cityscape with its shell limestone façade, and provides approximately 25,500 m² of office and retail space, as well as one of the most modern parking garages in the City Center of Stuttgart with approximately 266 parking spaces. All office space has been leased to LBBW on a long-term basis. The retail address of Kronprinzbau, developed in 2007, offers a balanced mix of tenants, including luxury fashion retailers such as Max Mara and René Lezard, the traditional Stuttgart firm Feinkost Böhm, as well as a dm drug store.
Ken MacRae, Managing Director of the fund entities, said, “We are excited about the successful closing of the two acquisitions that, as a result of their investment profiles, provide for good diversification and a balanced investment with long-term value growth potentials.”
The Senior Managing Directors of Hines Immobilien GmbH, Alexander Möll and Christoph Reschke, also expressed their great satisfaction, “Kö-Quartier and Kronprinzbau are, without a doubt, outstanding properties at their respective locations and feature an excellent portfolio of tenants. We are thrilled about these first acquisitions of the fund in Germany.”
Benjamin Biehl, Director of Hines Immobilien GmbH, added, “Kö-Quartier offers the investors the possibility of cooperating with existing premium tenants and the rare opportunity of a new development in the best office location in Düsseldorf. In particular, after the development and sale of Benrather Karree in 2003 and the purchase of the Metropolitan in 2011, I am very happy to reopen the local office of Hines Immobilien GmbH in Düsseldorf.”
Emanuel Coskun, Director of Hines Immobilien GmbH, commented, “As a citizen of Stuttgart, personally, I am also very satisfied with the acquisition of Kronprinzbau through the fund. The building is certainly one of the most distinguished ones in the entire city and, because of this, an extremely attractive long-term investment. After the completion of the Postquartier project and the acquisition of the headquarters of Mercedes-Benz Bank, Hines Immobilien GmbH now manages another trophy asset in Stuttgart.”
Debt financing of Kö-Quartier and the associated development project is provided by LBBW. On the seller side, BNP Paribas Real Estate and Eastdil Secured as well as Clifford Chance Germany advised.
Regarding Kronprinzbau, debt financing is provided by ING. The sale was completed off-market.
On the buyer side, Pöllath + Partners, Clifford Chance Luxembourg, and PwC provided legal and tax consulting for both acquisitions. Additional commercial consulting of the buyer regarding Kö-Quartier was provided by Savills.