Invesco Real Estate (IRE), the international property investment manager, is pleased to announce the exchange of contracts for Gänsemarkt 45 ('G45') in Hamburg, Germany and Flahult 21:45 in Jönköping, Sweden for a total investment of ca. 96 million.
The properties are being purchased for a pan-European fund and follow closely on the fund's recent announcement of its acquisition of 1 Finsbury Circus in the City of London for £141.5 million (approx. 160.2 million).
Paddy Bingham, Invesco Real Estate's Director of Fund Management, says: "These transactions mark the pan-European fund's second acquisition in Germany and its first in the Nordics, meaning that it is now fully diversified across all seven of its target markets and across the three commercial sectors.
"G45 and Flahult are assets that fit well within the fund's investment strategy and provide further diversification to the existing portfolio of eight properties across the UK, France, the Netherlands, Germany, Spain and Poland."
G45 is an eight-story mixed-use (office and retail) modern, grade-A property with 9,000 m² of office space, 2,800 m² of retail space and 49 underground parking spaces.
The property is let on long-term leases to a strong covenant of high quality tenants such as HSBC, Planet Sports and Urban Outfitters. It is located in one of the most well-known office and commercial property areas of Hamburg's CBD, within the prestigious location of Gänsemarkt Square. Gänsemarkt stands out due to its superb infrastructure and attractive neighborhood, numerous cafés and restaurants as well as being near to the Gänsemarktpassage and Staatsoper (State Opera) and local transport.
Flahult 21:45, the second acquisition, is a 45,288-m² modern logistics property with 64 parking spaces located in Torsvik Logistics Park, Jönköping, in southern Sweden. It is currently fully let on a long-term lease to Aditro Logistics AB. Jönköping is a leading transport, logistics and communications area, being situated between Gothenburg and Stockholm, with excellent rail, road and air access.
"In our view, the stability of the German investment market as a whole and the Hamburg market in particular, with its excellent economic and demographic outlook, makes this an interesting investment market.
"In addition, over the next five years, we expect the Swedish economy to continue to perform strongly and, as such, we believe this asset will perform well for the fund," says Paddy.
Source: Invesco Real Estate