HOCHTIEF Projektentwicklung has sold two projects as of the start of construction to SEB Immobilien-Investment GmbH, which will add the two buildings to its SEB ImmoInvest mutual fund. The properties are the Galilei in Mannheim and the Z-UP in Stuttgart. Both are office buildings in excellent locations near the respective city centers.
The parties to the contract have agreed on a preliminary purchase price of approximately 50 million. The final purchase price may be adjusted upwards depending on the occupancy rate at the time of the final acceptance of the properties.
The Z-UP office building is being constructed at the corner of Vordernbergstraße and Heilbronner Straße in the immediate vicinity of Stuttgart's main railway station. Designed by architect Professor Kergaßner, the building received the name "Z-UP" (pronounced "set up") due to its z-shaped floor plan and its elevated location above Heilbronner Straße. The building will have six storeys and gross floor space of almost 9,000 m². A long-term lease for more than 70% of this amount has already been signed with the publishing and direct marketing company Reader's Digest Deutschland. Completion is scheduled for the beginning of 2009.
The five-story Galilei office building is being constructed near Mannheim main railway station on Reichskanzler-Müller-Straße. The main building is 150 metres long and 17 metres wide and offers a total of approximately 10,000 m² of gross floor space. It is divided into three sections, each with its own entrance area. One section of the building with more than 30% of the office space is fully let for the long term to the local branch of Deloitte & Touche. Completion is scheduled for the end of 2008.
Steffen Jüstel, head of the Baden-Württemberg branch of HOCHTIEF Projektentwicklung, sees this as a confirmation of his company's strategy of realizing projects featuring high-quality architectural designs in unique locations: "We take urban planning issues into account in the development of our projects and align tenant and investor interests." The early sale of Galilei and Z-UP to SEB demonstrate that both buildings are a successful mix for all involved.
"With Galilei and Z-UP, we have invested in attractive locations. We used this opportunity to diversify the German portion of our SEB ImmoInvest fund," said Choy-Soon Chua, Managing Director for real estate investments at SEB Asset Management in Frankfurt.