IVG Immobilien AG is purchasing an office property portfolio in Germany for €190 million to add to its own portfolio. The seller is an open real estate fund of DIFA Deutsche Immobilien Fonds AG. The properties are located in Dusseldorf, Munich and Stuttgart. IVG is thus consolidating its position in the German office property market and is advancing its growth strategy for its own portfolio.
The portfolio comprises a total of four office properties with a total lettable space of 66,000 m². The majority of the buildings were erected in the 1990s or later and are in excellent condition. They are leased up to 88% on a long-term basis. The reduction of the current 12% vacancy rate is a significant lever in the capital appreciation of the properties. IVG aims to let these new properties as soon as possible.
"In conjunction with the positive economic development in Germany, our office markets still offer significant upward potential both in terms of rents and property prices when compared internationally", is how Wolfhard Leichnitz, Chairman of the Board of Directors at IVG Immobilien AG, explained the purchase of the real estate portfolio.